In protest at the Israeli attacks against , has canceled a deal with Israel Aircraft Industries to upgrade aircraft, Israeli sources said on Tuesday.

The cancellation of this deal is seen as a sever blow to the Israeli Aircraft Industries, which constitutes, together with other weapons’ industries, a major source of income for Israel.  The Turkish government has canceled a deal to upgrade fighter jets worth USD 500 million because of the war in Lebanon, leaving Israel at fear that more deals could be canceled.

‘s interest in Israeli military products has long been considered as a "goldmine" in . 

" was conceived as a replacement for and , who were big customers of Israeli weapons," he said. 

It is not new for to have military cooperation with .  In 1997 signed an agreement with for the upgrading of 54 Phantom aircraft at the cost of USD 1 billion.

The deal was concluded in 2003 and showed interest in upgrading another 50 Phantom jets for USD 500 million.

"They are old costumers, and the cancellation of the deal is a very bad sign," Ynet News quoted a senior military official as saying on Monday.

Yet, since the war in opposition parties in have increased pressure on the government to cut military ties with . 

However, apparently, war on was not the only motive behind canceling this deal as is weighing the purchase of new F-16 jets from the instead of upgrading its old fleet, Israeli Ynet News website said.

Before the war on , has boycotted military exercises because is taking part in these exercises.