Defense Stocks Surge as Iran Tensions Escalate

Lockheed Martin, Raytheon, and Northrop Grumman see stock prices jump amid uncertainty over potential conflict

Published on Mar. 2, 2026

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Defense contractors are seeing substantial gains on Wall Street as tensions between the U.S. and Iran continue to escalate. Shares of major weapons manufacturers like Lockheed Martin, Raytheon (now RTX), and Northrop Grumman have all hit new 52-week highs, with Northrop Grumman seeing the biggest spike at around 6% on Monday. The uncertainty surrounding a potential conflict with Iran has fueled these stock surges, which come as oil prices also jumped more than 6% over supply shortage fears.

Why it matters

The rising stock prices of these defense giants highlight how geopolitical tensions and the prospect of military conflict can benefit the bottom lines of major weapons manufacturers. As the U.S. and Iran remain at odds, these companies are poised to profit from increased defense spending and military procurement.

The details

Lockheed Martin, Raytheon, and Northrop Grumman all saw their stock prices surge on Monday, with Northrop Grumman jumping the highest at around 6%. The gains come as the broader market, including the Dow Jones Industrial Average and S&P 500, saw more modest or flat performance. Over the past nine months, since the U.S. first attacked Iran's nuclear facilities, Northrop Grumman's stock has skyrocketed 46%, Lockheed Martin has gained 40%, and RTX (formerly Raytheon) has jumped roughly 45%.

  • In June 2025, the U.S. first attacked Iran's nuclear facilities, triggering a consistent tailwind for defense stocks.
  • On Monday, March 2, 2026, defense contractor stocks surged to new 52-week highs amid escalating tensions between the U.S. and Iran.

The players

Lockheed Martin

A major U.S. defense contractor that manufactures military aircraft, missiles, and other weapons systems.

RTX (Raytheon)

A multinational aerospace and defense conglomerate, formerly known as Raytheon, that produces missiles, military and commercial electronics, and other defense technologies.

Northrop Grumman

A leading global security company that provides innovative systems, products, and solutions in autonomous systems, cyber, C4ISR, space, strike, and logistics and modernization to government and commercial customers worldwide.

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What’s next

As tensions between the U.S. and Iran continue to simmer, analysts will be closely watching to see if defense contractor stocks can maintain their momentum and whether further escalation leads to even greater gains for these companies.

The takeaway

The surge in defense contractor stock prices underscores how the military-industrial complex stands to benefit from geopolitical instability and the prospect of armed conflict. While these companies provide critical technologies for national defense, their financial windfalls also highlight the complex relationship between war, profits, and shareholder value.