Why has the Pentagon raised the risk of Israeli spying to the highest level?

The U.S. Department of Defense has reportedly classified Israel as a "critical" counterintelligence threat, the highest designation in its internal assessment system. This move signifies a significant escalation in U.S. concerns over Israeli espionage activities targeting American interests.

The assessment, cited by NBC News and The New York Times based on anonymous U.S. intelligence and defense officials, indicates that Israeli intelligence agencies have intensified their efforts to collect information on U.S. military personnel, government officials, and sensitive policy discussions. A primary focus of this intensified surveillance is reportedly on American officials shaping Washington's approach to Iran, particularly amid ongoing diplomatic engagements that Israel opposes.

This heightened alert comes at a sensitive time, as the U.S. pursues diplomatic engagement with Iran, a process with which Israel strongly disagrees. The divergence in approaches between Washington and Jerusalem regarding Iran policy appears to be a key driver behind the increased Israeli intelligence gathering. Reports suggest that Israeli efforts to understand U.S. positions in the Iran talks have crossed a line for some American officials.

Intelligence assessments have pointed to increased Israeli surveillance in recent weeks targeting key U.S. figures involved in shaping policy toward Iran, including Trump envoy Steve Witkoff and Pentagon policy official Elbridge A. Colby. Furthermore, the reports reference alleged incidents where U.S. defense personnel working in Israel discovered surreptitious software installed on their phones, designed to tap their communications. These findings suggest a pattern of Israeli intelligence operations that have surged since late 2024, coinciding with the Biden administration's increased pressure on Israel over its actions in Gaza.