Defense stocks rise as tensions escalate with Iran’s missile attack on Israel

U.S. aerospace and defense companies such as Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC) and RTX (RTX) rose on Tuesday as Iran attacked Israel with ballistic missiles.

The attack had been anticipated throughout much of the day, with the White House warning reporters that Iran was preparing to launch missiles at Israel.

Such an attack brings the risk of wider-spread war in the Middle East amid Biden’s efforts to avoid an escalated conflict. The missile attack came days after Israel killed Hezbollah leader Hassan Nasrallah and hours after the Israeli military invaded southern Lebanon.

Before the attack, the United States had pledged to help defend Israel, a White House official told The Wall Street Journal.

Multiple U.S. defense contractors rose Tuesday (as of 1 p.m. ET):

• AeroVironment (NASDAQ:AVAV) +5.3%
• Kratos (KTOS) +4.6%
• Northrop Grumman (NOC) + 4%
• Lockheed Martin (LMT) + 3.7%
• L3Harris Technologies (LHX) + 3.5%
• Leonardo DRS (DRS) +2.7%
• RTX (RTX) +2.7%
• Boeing (BA) +2.1%
• Curtiss Wright (CW) +1.8%
• General Dynamics (GD) +1.4
• Heico (HEI) +1.2%

“The United States has indications that Iran is preparing to imminently launch a ballistic missile attack against Israel,” a senior White House official was quoted as saying. “We are actively supporting defensive preparations to defend Israel against this attack. A direct military attack from Iran against Israel will carry severe consequences for Iran.”

The United States in April helped to defend Israel against a barrage of more than 300 Iranian missiles and drones.

The U.S. Defense Department on Monday said it would increase the number of Air Force F-15E, F-16 and A-10 warplanes deployed in the Middle East region. The U.S. will maintain its number of F-22s in the region.

The Pentagon is keeping the Abraham Lincoln aircraft carrier battle group in the region, while the USS Harry S. Truman aircraft carrier strike group is scheduled to arrive midweek.