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December 25, 2024
Interceptors

The U.S. Interceptor Shortage and Its Impact

The U.S. interceptor shortage impacts both the response to the Houthi threat and the sleep of millions of Israelis.

Israel and the U.S. are cooperating to address the Houthi threat. However, due to a shortage of interceptors in the U.S. Navy, some missiles are not intercepted far from Israel's borders. This leads to the activation of sirens in Israel, requiring the Israeli Air Force's air defense system to neutralize these threats.

Even the mighty America faces challenges in managing its armament economy. How did it come to this point? Since the early stages of the war, the U.S. has deployed aircraft carriers and Arleigh Burke-class destroyers in the Red Sea, the Gulf of Aden, and the Arabian Sea. These destroyers carry Standard Missile (SM) interceptors capable of neutralizing Houthi-launched missiles during their ascent phase, long before they reach Israel.

These interceptors are quite expensive, costing several million dollars each (more than the Arrow system, though not necessarily superior). However, the shortage isn't due to financial constraints. Throughout the war, American destroyers have had to fire large quantities of these missiles to protect themselves, the aircraft carriers, commercial vessels targeted by the Houthis, and Israel. Additionally, the U.S. assisted Israel in countering Iranian attacks using SM missiles.

These missiles are manufactured by RTX, formerly Raytheon, one of the world's largest defense contractors. Due to their complexity, RTX produces only a few hundred of these missiles each year. The U.S. wasn't prepared for the scenario of two prolonged wars in different parts of the world simultaneously—the war in Ukraine and the war in the Middle East.

Moreover, stock management is also influenced by the possibility of escalation in the Pacific region, between China and Taiwan. Add to this the fact that more than 10 other countries, in addition to the U.S. Navy, have pre-ordered SM interceptors, and you have a shortage of this type of interceptor.

This is likely one of the reasons the U.S. deployed the Terminal High Altitude Area Defense (THAAD) system in Israel. THAAD can also intercept ballistic missiles, but since it is ground-based, it does so toward the end of their flight path—in other words, it doesn’t "prevent" the alarms from sounding.

In conclusion, this isn't a 'punishment' by the Biden administration against Israel. The U.S. continues to assist in defense, though their capabilities have diminished, impacting the sleep of many until the Houthi threat is dismantled.

(Tamir Morag on X)

✍️ @beholdisraelchannel

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🌆 Market News Digest
[2026-07-19 17:00–2026-07-20 16:30 EST]

🔥 Top Stories
• U.S.-Iran conflict escalates — fresh U.S. strikes, Iranian retaliation, and talks/ceasefire chatter keep markets on edge
• Oil surges on Hormuz risk — Brent topped $90 intraday, WTI near $83, with tanker incidents and Saudi/Hormuz shipping threats
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• UK government reset — Starmer resigned; Burnham took over with a reshuffled cabinet, pledging fiscal rules but more flexibility

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• Chevron shuts Petronius output — Gulf platform shut-in as storm risk adds to energy supply worries
• CPC oil loadings suspended — attacks on tankers halt Kazakhstan ...

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Diesel is the most important fuel for the global economy, widely used in agriculture to fuel tractors and combine-harvesters.

@CIG_telegram

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