Israeli defense officials on Sunday confirmed $1.6 billion in deals to sell drones as well as anti-aircraft and missile defense systems to Azerbaijan, bringing sophisticated Israeli technology to the doorstep of archenemy Iran.
The sales by state-run Israel Aerospace Industries come at a delicate time.
Israel has been laboring hard to form diplomatic alliances in a region that seems to be growing increasingly hostile to Israel.
Its most pressing concern is Iran's nuclear program, and Israeli leaders have hinted broadly that they would be prepared to attack Iranian nuclear facilities if they see no other way to keep Tehran from building bombs.
Iran denies Israeli and Western claims it seeks to develop atomic weapons, and says its disputed nuclear program is designed to produce energy and medical isotopes.
In Jerusalem, Prime Minister Benjamin Netanyahu said Iran's nuclear program will take center stage in his upcoming talks with U.S. and Canadian leaders. Netanyahu is to meet with Canadian Prime Minister Stephen Harper in Ottawa on Friday and with President Barack Obama in Washington on Monday.
Speaking at a cabinet meeting on Sunday, Netanyahu said a UN nuclear agency report last week buttressed Israel's warnings that Iran is trying to produce a nuclear bomb. The agency said Iran has rapidly ramped up production of higher-grade enriched uranium over the last few months.
Netanyahu said the report provided "another piece of incontrovertible evidence" that Iran is advancing rapidly with its nuclear program.
It was not clear whether the arms deal with Azerbaijan was connected to any potential Israeli plans to strike Iran. The Israeli defense officials spoke on condition of anonymity because they were not at liberty to discuss defense deals.
Danny Yatom, a former head of Israel's Mossad spy agency, said the timing of the deal was likely coincidental. "Such a deal ... takes a long period of time to become ripe," he told The Associated Press.
He said Israel would continue to sell arms to its friends. "If it will help us in challenging Iran, it is for the better," he said.
Israel's ties with Azerbaijan have grown as its once-strong strategic relationship with another Iranian neighbor, Turkey, has deteriorated, most sharply over Israel's killing of nine Turks aboard a ship that sought to breach Israel's blockade of the Gaza Strip in 2010.
For Israeli intelligence, there is also a possible added benefit from Azerbaijan: Its significant cross-border contacts and trade with Iran's large ethnic Azeri community.
For that same reason, as Iran's nuclear showdown with the West deepens, the Iran sees the Azeri frontier as a weak point.
Earlier this month, Iran's foreign ministry accused Azerbaijan of allowing the Israeli spy agency Mossad to operate on its territory and providing a corridor for "terrorists" to kill members of Iranian nuclear scientists.
Azerbaijan dismissed the Iranian claims as "slanderous lies." Israeli leaders have hinted at covert campaigns against Iran without directly admitting involvement.
Israel, meanwhile, recently claimed authorities foiled Iranian-sponsored attacks against Israeli targets in Azerbaijan. Such claims have precedents: In 2008, Azeri officials said they thwarted a plot to explode car bombs near the Israeli Embassy; two Lebanese men were later convicted in the bombing attempt.
A year earlier, Azerbaijan convicted 15 people in connection with an alleged Iranian-linked spy network accused of passing intelligence on Western and Israeli activities.
Iran has denied Azerbaijan's latest charges of plotting to kill Israelis, but a diplomatic rupture is unlikely. Azerbaijan is an important pathway for Iranian goods in the Caucasus region and both nations have signed accords among Caspian nations on energy, environmental and shipping policies.
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