Your argument has four weaknesses (says the guy from the no.1 per capita arms exporting nation...).

First, if you don't sell, someone else will. (We always say, "if we don't sell, the French and Russians will")

Secondly, there is a fundamental difference between selling drugs and arms. Drugs are criminal to sell. Arms deals are by definition a matter of international relations, and as the international system is anarchic, arm sales cannot, by definition, be illegal. Except if the arms are sold to a nation under a weapons embargo which is supported by all great powers.

Third, every nation has a right to buy arms for self defence. The alternative is that every nation has a reasonably big and diversified domestic arms industry.

Fourth, how are you supposed to opress anyones human rights with a fighter bomber? If the French were selling machetes, tear gas or torture manuals, there might be reasons for worry and complaint.

Peak oil is not an energy crisis. It is a liquid fuel crisis.