Special Report - 2012 September 11 Attacks 

On the 11th anniversary of the September 11 terrorist attacks, U.S. embassies and consulates were attacked across the Arab world. In Libya, the attack on the U.S. consulate in Benghazi, possibly planned by al Qaeda, resulted in the murder of four U.S. officials, including Ambassador to Libya Chris Stevens, the first murder of an American ambassador in more than 30 years. Mobs stormed the U.S. embassies in Egypt and Yemen, tearing down U.S. flags, and replacing them with a black, Salafi flag associated with al Qaeda. Protesters also gathered outside U.S. embassies in Tunisia and Algeria as well as the U.S. interests section in the Swiss embassy in Iran.

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U.S.-Israel Cooperation

Admiral James A. Winnefeld (right) seen with IDF Chief of Staff, Lt. Gen Benny Gantz (left).

Austere Challenge 12, a joint U.S.-Israel ballistic missile drill, scheduled for last spring but postponed until October, will feature greatly reduced U.S. participation. Originally set to involve 5,000 U.S. soldiers, two Aegis-outfitted warships, and Patriot antimissile systems, the new drill will reportedly involve 1,500 U.S. servicemen, a single Aegis ship, and crew-less Patriot systems. The Pentagon has maintained that the reduction in size was planned in advance, well-known to Israel, and is a result of concurrent operations.

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Missile Defense

The IDF has begun testing Iron Dome batteries across the country in anticipation of the increased rocket threat. In recent weeks, it has positioned batteries in Eilat, Haifa, and Tel Aviv, cities likely to be affected by rocket fire in a potential future conflict. The developers of Iron Dome missile defense system were awarded the 2012 Israel Defense Prize as well as the Outstanding Achievement Award at the National Defense Industrial Association's Missile Defense Division Annual Membership Dinner & Awards Program, June 20.

The U.S. Army has begun soliciting the defense industry for ideas on building an Iron Dome-like system. The Army has dubbed the weapon concept as a "Multi-Role Launcher" that can take out missiles and unmanned drones that threaten U.S. installations over a 40-mile radius.

U.S. defense firms expect an expanding market for anti-missile systems, including the joint U.S.-Israel Arrow systems, from Gulf countries, to Asian states, to U.S. forward bases.

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Egypt Watch

Tensions between Egypt and Israel continue to rise following last month's terrorist attack in the Sinai that breached the Israeli border. As a result of the attack, Egypt introduced tanks and other armored vehicles into the Sinai, a direct violation of the Egyptian-Israeli peace treaty. Operation Nisr, the Egyptian crackdown on Sinai jihadists, reportedly involved up to 60 tanks and killed scores of militants. After Israel lodged a diplomatic protest, Cairo withdrew some of the armor from Sinai.

Despite facing a dire financial outlook, Egypt has agreed to buy two Type 209 attack submarines from Germany. While they are far less advanced than Israel's German-built Dolphin-class submarines, which are based on the Type 209, the deal has raised questions about Egypt's military intentions.

Last week, U.S. aircraft arrived in Egypt for a joint exercise, codenamed Eagle Arena 2012. The exercise involved air and naval forays over much of the country, including the Sinai and the Red Sea. The Administration has also offered Egypt an intelligence capabilities package that includes electronic signal trackers to help in the fight against militants in the Sinai.

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Iran Watch

Iran has begun construction on a $300 million anti-aircraft missile base near Abadeh, in southern Iran. The announcement was shortly followed by a claim by the Iranian air defense commander that Iran's indigenously-developed air defense system, the Bavar 373 plan, is 30% complete and will be completed by March 2013. The Bavar 373 is intended to replace the canceled sale of the Russian S-300 system. Tehran also announced it would hold its largest-ever anti-aircraft exercise later this fall.

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Levant Watch

The Syrian civil war continues to escalate and casualties continue to rise. Rebels managed to shoot down Syrian government helicopters and control swaths territory along the Turkish border. The Assad regime, despite mounting defections, continues to control the major cities and shows no sign of ending its brutal measures. Iran continues to supply Assad's forces through Iraqi airspace, and the conflict has spilled over into Lebanon as well as Jordan.

The IDF continues to clear old landmines from the Jordan Valley area as part of a multi-year land reclamation project.

Three Chinese naval ships docked in Haifa last month for a five-day visit commemorating the 20-year anniversary of diplomatic relations between Israel and China. The visit was warmly welcomed by the Israeli navy. 

Suspected Hezbollah operatives were arrested in Mexico last week. Hezbollah's presence in Latin America has been well-documented over the years.

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