To prohibit arms transfers to certain countries unless the President certifies that a state of war does not exist between such country and Israel and that such country has accorded formal recognition to the sovereignty of Israel.

Prohibits: (1) the sale or transfer of defense articles or services and design and construction services to Bahrain, Yemen, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, Syria, and the United Arab Emirates; and (2) the transfer to such countries by another foreign country of U.S. defense articles or services. Makes such prohibition inapplicable if the President certifies to the Congress that: (1) a state of war does not exist between the country and Israel; and (2) such country has accorded formal recognition to the sovereignty of Israel.