In September 2011, military agreements between Turkey and Israel were suspended. Since March 2010, Turkey has frozen 16 arms contracts worth billions of dollars. Turkey has suspended a $5 billion deal for 1000 Merkava Mk 3 tanks.  Turkey also abandoned Israel Aerospace Industries` Arrow-2 anti-ballistic missile system for $2 billion in tenders, with only U.S., European and Chinese companies allowed to offer.  Turkish President Recep Tayyip Erdogan commented on the recent improvement in relations between Turkey and Israel in December 2015 and said: “This process of normalization has much to offer us, Israel, Palestine and also the region… The region needs it. Relations between Turkey and Israel have been strained since the 2010 Gaza incident, which killed nine Turkish citizens. In the post-Cold War context, the Kurdish question was Turkey`s main concern. Turgut Ozal, in power from 1983 to 1989, sought a democratic solution to the Kurdish question and normalized relations with the Arab world. However, his accession to the presidency, and his death in 1993, created a leadership vacuum within the centre-right liberal party, allowing the army to return as an important force in domestic and international politics.
Turkey has moved closer to a military solution to deal with the Kurdish problem. The army saw Israel as a source of technology and a counterweight to Syria, which supported the PKK. According to this calculation, Syria, the PKK and Greece formed an alliance; Turkey then moved closer to Israel. In reference to a 1995 defence cooperation agreement between Greece and Syria, the former Turkish ambassador to Washington and an influential member of the foreign policy elite outlined in 1996 a new Turkish defence strategy aimed at preparing “two and a half wars”, i.e. simultaneous wars against Syria and Greece and , to a lesser extent, against the PKK insurgency.41 Israel was a natural ally of Turkey and Turkey was getting closer and closer to Israel. Many observers were keen to see this relationship as a strategic alliance or a new axis,42 and several PhD students shared their theses.43 Few observers pointed out that the Alliance had its borders.44 In 1996, Turkey and Israel signed a free trade agreement. An agreement to avoid double taxation came into force in 1997. A bilateral investment agreement was signed in 1998.  Israeli government officials also called on Turkey to take steps to close Hamas headquarters in Istanbul before a final agreement is signed.