Stands shuttered at some Israeli defense firm showcasing at Paris Air Show

The stands of at least two major Israeli defense firms were blocked off to attendees at the Paris Air Show on Monday, in a move Israel said was ordered by the French government following a dispute over the displays.

Boards were placed around the pavilions of firms including Elbit Systems and Israel Aerospace Industries (IAI), which were showcasing examples of military hardware. The booths of Rafael and Uvision were also shuttered, according to Reuters. CNBC has not independently verified this report.

"Last night, just one day before the Paris Air Show opened in Le Bourget Airport, exhibition organizers acting on behalf of the French government ordered the removal of offensive weapons systems from Israeli defense industry pavilions — breaking with standard practice at defense exhibitions worldwide," Israel's Defense Ministry said in a statement.

The ministry said it had told the air show organizers that it rejected the demand, and that the conference staff responded by erecting black walls overnight, blocking the pavilions for the start of the event Monday.

"This outrageous and unprecedented decision reeks of policy-driven and commercial considerations... The French are hiding behind supposedly political considerations to exclude Israeli offensive weapons from an international exhibition - weapons that compete with French industries," it said.

CNBC has contacted the Paris Air Show organizers and the French government for comment.

Israeli defense firms have been promoting new products set to unveil at the Paris event — one of the biggest in the aviation world — such as Elbit's PAWS-2 (HR) infrared missile warning system.

Defense is a major focus in Paris this year amid geopolitical tensions and pledges for higher European security spending, along with relatively subdued demand by commercial airlines to place major new orders given existing backlogs.

Other defense firms present at the show include the U.S.'s Lockheed Martin and Raytheon, European missile manufacturer MBDA and the Aviation Industry Corporation of China, while hundreds of military delegations are set to attend.

"Last night, after our booth was set up and ready for the show, we were asked to remove some of our systems from the booth," IAI's President and CEO Boaz Levy said in a statement.

"We tried to negotiate with them, but it seems these orders came from the highest levels in Paris," Levy said, adding the company had received authorization to participate in the show and complied with organizers' requests. The IAI team was blocked from entering the booth, he noted.

Levy said he was "shocked" by the decision and alleged discrimination.

The move comes amid escalating conflict between Israel and Iran, with deadly air strikes between the countries continuing for a fourth day on Monday. Israel launched a series of strikes Friday targeting locations it said were related to Iran's nuclear program, killing several senior military officials.

France's government and President Emmanuel Macron have meanwhile increased their criticism of Israel over its ongoing military operation in Gaza in recent months, with a joint statement from the United Kingdom, France and Canada in May calling the level of human suffering there "intolerable."

— CNBC's Charlotte Reed contributed to this report.