Middle East carnage continues to line the pockets of superfunds

The Iran War brought a new round of death and destruction in the Middle East, and with it profits for the arms companies supported by our retirement money. Andrew Gardiner reports.

All three combatants in the American-Israeli offensive against Iran may not have much to show for it, but so do Elbit Systems, Israel Chemicals (ICL) and Caterpillar Inc., who are reaping the rewards of destruction. This cannot be said for companies like.

Many Australian super funds are investing in the success of these companies.

Following the February 28 attack on Iran, Israel alone added a whopping US$2.9 billion to its defense budget, with contractors lining up to cash in. “I currently expect around 30% of this budget increase ($870 million) to reasonably go to Elbit Systems,” analyst Dhierin Bechai said. wrote.

Elbit Systems may ring a bell for members of the 10 Australian unions (see table below) whose super money is tied up there. From a small perspective, they should be happy: Shares in Elbit are expected to reach $1,200 per share. increased wartime demand”.

The luck doesn’t end there. Along with the attack on Iran came Israel’s invasion of Southern Lebanon in March. 1.2 million people killed and killed in just over a month more than 2,000In what appears to be a targeted drone strike on an aid vehicle clearly identified as a young man, including 16-year-old Jude Suleiman food delivered.

Such attacks rely heavily on Elbit’s Hermes 900 drones, which can stay airborne for 30 hours and carry precision-guided bombs. With the 900s costing up to $30 million each and Iran claiming to have shot down at least four of them in one April week, there’s plenty of room for repeat business.

Use of phosphorous ammunition

In the early stages of this invasion, Human Rights Watch reported that white phosphorus munitions literally punched holes in civilian residents of the southern Lebanese town of Yohmor. “White phosphorus, which is banned for use as an incendiary weapon, burns to the bone at temperatures above 800°C, causing organ damage.”pain for life”and sometimes outright death.

During previous conflicts in Gaza UN fact-finding mission It was concluded,

“Israeli armed forces systematically acted recklessly (using white phosphorus) in populated areas”,

and that the incidents involving its use against hospitals violated the Geneva Convention. Neither these findings nor Israel’s break a promise Australia has stopped and discouraged funds such as Super, HostPlus and CBUS from investing in ICL, which produces white phosphorus at US facilities in the Negev Desert and St Louis.

Bulldozers as weapons of displacement

This year, the Israelis have also stepped up their violent campaign to settle Palestinian territory in the West Bank, with headlines focusing on the Persian Gulf. “What we are witnessing is a man (Israeli Prime Minister Netanyahu) who is wanted for war crimes and crimes against humanity. brag openly “It’s about defying international law while destroying the lives and livelihoods of Palestinians,” said Erika Guevara-Rosas of Amnesty International.

One of the corporate companies that benefited most from this dispossession was Caterpillar Inc., which provided the armored bulldozers, excavators, and loaders used to demolish the homes of Palestinians who had the right to live there. The company’s last windfall came last year $295 million Trump Administration-approved sale of equipment that enables the next wave of illegal settlements.

Australian Super, UniSuper, HostPlus and HESTA are among Caterpillar’s investors; A shrewd move in a “growth area” that could end in disaster if your only hedge is financial gain. In the bigger picture, the instability these companies feed on is funded as the Middle East becomes more unstable by the day. may yet burn super fund investors

Star “artist” Elbit

Elbit Systems had a major hand in supporting Israel’s stock indexes amid the turmoil. 7 October attacks. Elbit, a major player in the 10 percent of MSCI’s Israel index, said:growing order book Pioneered as iShares for “battle-proven defense systems” MSCI Israel increased by 14.1 percent in the last fiscal year.

The clear co-dependence between Elbit and Israel’s barbarian army is best summed up by the company’s CEO, Bezhalel (Butzi) Machli, who explained in a 2025 investor teleconference how Elbit deployed its personnel alongside the IDF.during the fight”.

Divestment activists argue that Elbit’s “war criminals and genocidaires”.

“Make Iran look like Gaza”: Chilling inside view from Israeli arms fair

Machlis went on to describe how Elbit “vastly increased production and met (IDF) demands” for the 2024 attack on Gaza. Observers point to an alignment of interests between Elbit (which wants the shekel) and Netanyahu (who wants the shekel). stay out of prison), both see “permanent wars” as a guarantee of their agenda.

Their interests may be aligned, but is the ongoing Middle East turmoil in the long-term interests of union members and their superiors? Energy costs soar, supply chains and trade restlessand global growth below.

Spherical MSCI fell accordingly, 3.2 percent decrease For the quarter ending March 31. Yes, Israeli MSCI index is on the rise but super funds big mass their money elsewhere.

Analysts and academics say a stable Middle East, with benefits for Australian superfunds, is good for the world economy.

“You could argue that the financial interests of super fund members are being undermined by investments that support the Israeli military,” Claire Parfitt, Senior Lecturer in Political Economy at the University of Sydney, told MWM.

Corruption and war profiteering

Union members whose super funds are held by Elbit Systems may not be aware of the company’s turbulent recent history. Just last year, NATO’s procurement arm (NSPA) suspended 13 contracts linked to Elbit or its subsidiary Orion Advanced Systems due to a crisis. major corruption investigation Questionable kickbacks, insider information and manipulated bids by officials or consultants have derailed Elbit, some say.

If NATO finds Elbit guilty of this misconduct, don’t expect the four industry super funds with money to cash in on share exits. Investing in “corrupt” companies is not prohibited in Australia; instead, fiduciary duties are “governed” through a combination of prudential standards and security measures. ethical statement Requirements that activists say can be surpassed by truck.

From the Vietnam war to the Gaza genocide. Where have all the unions gone?

Accusations of war profiteering against companies like Elbit, whose upper echelons and major shareholders amassed “steam chests of money” while their weapons caused genocide in Gaza, are indeed story of industrialist Oskar Schindler (without his wartime manifestation or ‘list’ of survivors).

It’s a confronting role reversal, to be sure, but that’s what you get when the descendants of powerless outcasts in the 1930s and ’40s have all the power 90 years later.

“The Nazi genocide cannot be relativized or generalized. It was an unprecedented act of industrial slaughter; a uniquely horrific crime against humanity.” I wrote these words in the Times of London in 2012, condemning Holocaust denial in the Muslim community. I’m with you… pic.twitter.com/jq9q0XidFV

— Mehdi Hasan (@mehdirhasan) October 13, 2025

The genocide in Gaza is just one of them. repetition of reasons Why Australian super funds should pull out of Elbit and other companies accused of war profiteering

But there is an equally long catalog of excuses for funds that won’t lift a finger to desist from the slaughter, from the legal prioritization of a unionist client’s “best financial interests” (emphasis added) to the author. was discovered just last week:

At least we don’t invest in mines, chemical and biological weapons

How do you define these “best financial interests”? Middle East peace would be a good start, but try to persuade brokers eyeing quick wartime cash or a government in Canberra, former foreign secretary Bob Carr insists: caught by Zionist pressure groups

Given that only a handful of superfunds are offering token sales, and syndicates are generally reluctant to take action, readers need not despair. They can always take matters into their own hands by switching to one of the two super funds that don’t invest in genocide.

Your money, their rules. Super funds support Israeli war machine

An Adelaide-based Media Studies graduate with an MA in Social Policy, I was an editor covering current affairs, local government and sport for a variety of publications before deciding to change careers in 2002.