Earlier quoted context omitted.
Is that sarcasm? The Israelis spying on the us is hardly anything new
There's a pretty big difference between israel, the country spying on somebody out of national interest, and israel allowing what is essentially an arms-dealer based in israel to help random other people spy on countries they are allied with. I highly doubt that israel the country wanted this turn of events, for the simple reason they are not stupid and the cost-benefit ratio of this seems bad for them.
Yes and sort of and no.
The thing with weapons is that occasionally you sell them to people you end up fighting. Take the Falklands war - Argentina was using American, French, and British weapons to fight the British. It happens, it's a bit of egg on everyone's face, but it is what it is.
When you're a major arms dealer, you'll eventually end up selling guns to an enemy of your ally, or supposed ally.