Defense stocks climb as US-Iran tensions flare

Kratos Defense & Security Solutions

02/03/2026 09:33

** Shares of U.S. defense firms surge premarket amid spike in Middle East turmoil

** U.S.-Israel strikes in Iran over the weekend - and Iranian retaliation - sends shockwaves worldwide across sectors

** Lockheed Martin LMT.N up 8.3%, RTX RTX.N rises 6.6% with thin volumes, while Kratos Defense KTOS.O advances 8.1%

** Rising geopolitical risk typically supports defense stocks on stronger demand

** S&P 500 Aerospace and Defense .SPLRCAERO index up 13.2% YTD as tensions between the U.S. and Iran remained on the brink amid a standoff in nuclear talks

 (Reporting by Rashika Singh in Bengaluru)