Lockheed Martin Corporation (NYSE: LMT) experienced a significant surge of more than 3.6% in early trading on Friday, June 13, 2025, propelled by escalating geopolitical tensions in the Middle East following Israel’s military strikes on Iran. The defense giant’s stock outperformed a faltering broader market, as investors turned to military contractors amid growing fears of a widening regional conflict.
The rally in Lockheed Martin’s shares came on the heels of Israel’s extensive airstrikes late Thursday, which targeted Iranian nuclear and military facilities, including critical sites in Tehran. Israeli Prime Minister Benjamin Netanyahu, in a televised address, described the operation—named “Operation Rising Lion”—as a decisive step to neutralize Iran’s nuclear ambitions, confirming the deaths of senior Iranian military figures. Iran’s leadership vowed a harsh response, heightening global anxiety over the potential for further escalation.
Against this backdrop, defense stocks emerged as a rare pocket of strength in an otherwise jittery market. Lockheed Martin’s shares spiked as much as 3.38% in pre-market trading and held gains of 2.7% to 3% through the morning session. Other industry heavyweights, including Northrop Grumman and RTX, advanced roughly 2%, while General Dynamics rose 1.4%. In stark contrast, the S&P 500 and Dow Jones Industrial Average opened down 0.7% and 1.1%, respectively, reflecting widespread risk aversion.
Market analysts point to the likelihood of increased defense budgets and new government contracts as the primary drivers behind the sector’s gains. Lockheed Martin, a leading supplier of advanced weaponry to Israel through U.S. aid programs, is well-positioned to capitalize on rising demand for systems like the F-35 fighter jet, despite recent reductions in planned U.S. Air Force orders. The company’s role in missile defense and surveillance technologies further bolsters its appeal during times of international strife.
Yet, headwinds persist for Lockheed Martin, including supply chain disruptions tied to China’s dominance over rare earth materials and looming cuts to U.S. defense spending. Nevertheless, today’s stock performance reinforces the market’s perception of defense firms as a reliable refuge amid geopolitical storms.
As events in the Middle East continue to unfold, with the specter of Iranian retaliation looming large, investors remain on edge. For now, Lockheed Martin’s sharp ascent underscores the pivotal role of defense contractors in navigating an increasingly volatile global landscape.
