Refile: BUZZ-European defence stocks jump as investors pile into sector on Iran conflict

Dassault Aviation SA

02/03/2026 08:21

Corrects to show Kongsberg is Norwegian, not Danish in 4th bullet

** Shares in European defence companies jump as investors rotate into the sector after U.S.-Israeli strikes on Iran and Iranian retaliation over the weekend

** JPM says civil aerospace faces pressure while defence is "likely to rise," naming BAE Systems as the most exposed to a potential increase in U.S. spending with about 50% of its sales in the country

** BAE Systems BAES.L shares rise 7.4%

** Among other stocks, Germany's Rheinmetall RHMG.DE, Italy's Leonardo LDOF.MI, France's Thales TCFP.PA and Dassault Aviation AM.PA, Sweden's SAAB SAABb.ST, Norway's Kongsberg KOG.OL climb about  3.7%-8.5%

** Citi analyst Charles J Armitage says the conflict is likely to increase investor focus on missile-defence systems including ESSI (Arrow‑3, Patriot, IRIS‑T SLM, NASAMS) and SAMP/T, pulling in suppliers including Rheinmetall

(Reporting by Maria Rugamer)

((Maria.Rugamer@thomsonreuters.com))