On May 8 U.S. President Donald Trump announced that America would withdraw from the Iran nuclear accord and re-impose economic sanctions. He also announced that the U.S. would include additional sanctions at a later date. Trump elected to ignore warnings from top U.S. allies including the United Kingdom, Germany, and France in scuttling the deal.
The moves risks plunging the top Middle Eastern powers into a wider conflagration. Iran has staked out positions in Syria along with its Russian allies, while Israel and the U.S. have launched several attacks since the beginning of April. U.S. defence stocks surged after the news hit.
Raytheon Company (NYSE:RTN) was up 1.06% at the bottom of the noon hour on May 9. After rising over 2% on May 8 trading the stock is now up 5.3% week over week. Raytheon is one of the five largest U.S. defence contractors. The company has worked to develop the highly advanced U.S. drone fleet that has been used more and more in U.S. operations since the “War on Terror” began.
Lockheed Martin Corp. (NYSE:LMT) was up 1.27% in early afternoon trading on May 9. Shares are now up 7% week over week. Lockheed Martin is the largest defence contractor in the world, deriving 60% of its sales from the U.S. Department of Defense. The company recently resumed the delivery of the F-35 after clearing up a financial disagreement with the Department of Defense.
Related Stories
