Defense Stocks Climb Following Israeli Strikes on Iran

Shares of major U.S. defense contractors surged on Friday after Israel launched a series of airstrikes on Iranian nuclear and military sites, heightening fears of a broader conflict in the Middle East.

Northrop Grumman led the gains with a 2.4% jump to $507.15, followed by RTX Corporation (formerly Raytheon) which rose 1.2% to $142.70. L3Harris Technologies advanced 1.4% to $254.26, while Lockheed Martin posted a more modest 0.9% increase to $473.35. Several other defense firms also saw stock price increases in response to the escalation.

The market reaction came after Israel conducted five waves of coordinated strikes, targeting more than a dozen Iranian facilities—including the Natanz nuclear fuel-enrichment site. Israeli authorities stated the operation was aimed at preventing Iran from acquiring a nuclear weapon. The attack reportedly killed senior Iranian military commanders.

Iran vowed to retaliate, warning of consequences, while several Arab nations condemned the operation, labeling it a breach of Iranian sovereignty.

The geopolitical tension drew global attention. Former U.S. President Donald Trump urged Iran to return to the negotiating table and warned of “lethal consequences” if Tehran failed to agree to a nuclear deal. In an interview with The Wall Street Journal, Trump revealed that he and his administration were aware in advance of Israel’s strike plans.

The incident sent ripples through global markets, reinforcing defense equities as safe-haven plays amid rising regional instability.

• • Short-term: Expect continued volatility. Defense stocks benefit from geopolitical risk; energy and inflation-linked assets (oil, gold) also remain sensitive.
  • Medium-term: Watch policy clues—U.S. military posture, Iran de-escalation, and upcoming mid‑year budgets.
  • Valuation alert: Analysts caution that the initial surge is high-risk if the conflict doesn’t translate into sustained spending or contracts.