Defense stocks such as Kratos Defense and Security Solutions Inc. (NASDAQ:KTOS) surged 10.10% while Lockheed Martin Corp (NYSE:LMT) and Rtx Corp. (NYSE:RTX) climbed 6.67% and 6.58%, respectively.
L3Harris Technologies (NYSE:LHX) and Northrop Grumman Corp (NYSE:NOC) climbed 5.61% and 5.20%, respectively, in Monday’s premarket trading session.
U.S. and Israeli strikes on Iran and Tehran’s subsequent retaliation have triggered a rally in defense stocks, as investors anticipate a rise in defense spending due to the expected prolonged regional instability.
Mideast War Fears Rock Oil Markets
The conflict in the Middle East, which included the death of Iran's Supreme Leader, Ayatollah Ali Khamenei, has entered its third day.
President Donald Trump on Sunday indicated that the current U.S. military strikes against Iran could continue for “four to five weeks,” if necessary, and indicated there could be more casualties in days to come. Meanwhile, Iran’s security chief, Ali Larijani, rejected talks with Washington and accused Trump of driving the region into chaos.
Amid this, the global energy markets turned highly volatile on Monday as crude prices jumped to their highest levels since early 2025, following escalating military conflict. Goldman Sachs estimates an $18-per-barrel risk premium, about 25% of current prices, amid growing fears of a prolonged Strait of Hormuz blockade.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editor
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