Really? What Muslim countries have you guys sold arms to? How did the US prevent you from selling anything?
Start with Turkey, then some African countries. Iran, in the past. Not sure about Azerbaijan and the Kurds these days, lots of rumors. Most of it was hushed or unofficial.
The US demands that Israel clears every defense-related deal with them. It was hilarious when a US surveillance plane photographed a Chinese fighter that intercepted it a few years ago and then the US officials freaked out because the missiles on that fighter were recognized as Israelis. The US forced Israel to cancel early-warning radar planes deals with China and India (aka the "falcon deals") making the Israeli companies to lose millions, only to sell India a similar (though inferior) plane themselves. For years Israel was forbidden from selling Kfir fighters because the engine was american (though some were manufactured under license in Israel if I am not mistaken). One of the reasons to the cancellation of the Lavi fighter project was the realization (through not so moderate pressure) that it competes directly with the F16 and the US will prevent any sales, thus killing all possibility to cover its development expenses. Many other examples. With respect to the Merkava suggestion above, there is absolutely no way the US will clear this - if anything,
they will sell M1 Abrams instead.
