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15 handpicked stocks

Aftermath of Airstrikes: Defense & Energy Fortification

A carefully selected group of defense contractors and energy companies positioned to benefit from recent US military action against Iran. These stocks were handpicked by our analysts to capture potential gains from increased defense spending and energy price volatility in an unstable Middle East.

Author avatar

Han Tan | Market Analyst

Published on July 1

Your Basket's Financial Footprint

Concise interpretation of market capitalisation and investor takeaways for a defence and energy focused basket.

Key Takeaways for Investors:
  • Large-cap dominance tends to mean lower volatility and closer tracking to broader market moves.
  • Treat as a core, lower-risk holding for diversification rather than a speculative, high-conviction trade.
  • Expect steady, long-term appreciation likely rather than explosive short-term gains; manage returns conservatively.
Total Market Cap
  • LMT: $113.27B

  • XOM: $480.51B

  • BA: $164.28B

  • Other

About This Group of Stocks

1

Our Expert Thinking

This collection targets two sectors directly impacted by Middle East tensions: defense contractors producing military technology used in airstrikes, and energy companies that benefit from oil price spikes. With regional instability heightened after US attacks on Iranian nuclear sites, both sectors face increased demand and potential profitability.

2

What You Need to Know

This is a tactical, event-driven investment opportunity linked to ongoing geopolitical developments. These stocks tend to move on military news and energy supply concerns. While potentially profitable during periods of tension, their performance is closely tied to the evolving situation in the Middle East.

3

Why These Stocks

Our analysts selected specific companies with direct exposure to this geopolitical event. Defense picks include manufacturers of precision munitions, stealth aircraft, and military technology used in airstrikes. Energy selections focus on companies with the most to gain from oil price volatility and potential supply disruptions.

Why You'll Want to Watch These Stocks

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Immediate Reaction to Breaking News

These stocks respond quickly to headlines about Middle East tensions. When military action occurs, defense contractors and oil producers often see immediate price movement before the broader market catches up.

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Following the Pentagon's Money

Defense spending increases during periods of conflict. These companies receive the contracts for missiles, aircraft, and technology used in military operations, potentially leading to revenue growth and stock price gains.

Oil Price Volatility Creates Opportunity

Middle East tension historically drives oil prices higher. The energy companies in this group are positioned to benefit from price spikes and supply concerns, potentially boosting their profits and valuations.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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