I explore the relationship between superpower arms transfers and the A
rab-Israeli rivalry. My empirical analysis suggests that Soviet arms t
ransfers to the Middle East, more than American transfers, have exacer
bated interstate rivalry in the region. It also suggests that Soviet a
rms transfers, again more than American transfers, have encouraged com
pensatory arming by the other superpower. These conclusions derive fro
m the results of cross-correlation analysis, Granger-causality tests,
and variance decompositions, and are quite robust. While my findings p
aint a rather unflattering portrait of the effects of superpower invol
vement in the region, they do constitute grounds for optimism in light
of current developments.