Defense Secretary Pete Hegseth told Congress the Iran war has cost $37.5 billion so far, calling a new supplemental funding request "urgent and necessary." Separately, the White House is backing a $1.5 trillion defense budget — described as a generational military investment — while House Republicans passed a $1.15 trillion defense spending bill and a $95 billion supplemental package. Shipping traffic through the Strait of Hormuz has largely stalled as the U.S. and Iran edge back toward open conflict.
Defense
The U.S.-Iran War Is Costing $37.5B and Counting — Here's Where That Money Goes
Active combat, a $1.5 trillion defense budget proposal, and a stalled Strait of Hormuz are a sustained tailwind for a specific slice of defense.
1-YEAR MOVE
LHX
▼10.6%
NOC
▼9.6%
HII
▼12.5%
| Ticker | Company | 1-year change |
|---|---|---|
| LHX | L3Harris | −10.6% |
| NOC | Northrop Grumman | −9.6% |
| HII | Huntington Ingalls | −12.5% |
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Raytheon's Tomahawks and Lockheed's JASSMs are the primary tools of this air campaign — the spending clock is running.
Who cashes in: Raytheon (RTX) is the most direct beneficiary — its Tomahawk cruise missiles and air defense systems (Patriot, NASAMS) are the primary tools of a sustained air campaign against Iran. Lockheed Martin (LMT) benefits through F-35 munitions loads, JASSM cruise missiles, and broader aircraft sustainment. L3Harris LHX and Northrop Grumman NOC pick up signals intelligence, electronic warfare, and bomber support contracts. For the Strait of Hormuz angle, Huntington Ingalls HII builds the destroyers and carriers that enforce naval presence — a prolonged standoff keeps those hulls deployed and accelerates replacement orders.
Who's exposed: Commercial shipping and energy logistics companies face real risk. Tanker operators like Frontline (FRO) and International Seaways (INSW) see volatile rate swings — rates spike on fear but collapse if traffic reroutes permanently. Airlines with Middle East exposure (Delta, United) face fuel cost pressure if oil prices rip on Hormuz disruption.
What to watch next: Whether the $95 billion supplemental actually clears the Senate, and whether Hormuz shipping volumes recover. A formal ceasefire would deflate the urgency premium baked into defense names; an escalation toward Iranian nuclear sites would do the opposite.
Source: original report ↗
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