But the gains for munitions suppliers could be short-lived if the war neutralizes Iran as a threat in the Middle East, according to long-time defense analyst Byron Callan, managing director at Capital Alpha Partners<\/a> LLC, which offers strategic policy research and political forecasting.\t\t<\/p>\n Northrop Grumman closed up 6 percent; RTX, which owns Raytheon, Collins, and Pratt & Whitney, closed up 4.7 percent; L3Harris closed up 3.8 percent; while prime giants Lockheed Martin closed up 3.3 percent and Boeing closed up 2 percent. High-tech data analytics specialist Palantir Technologies rose 5.8 percent. Lockheed, RTX, and Northrop hit 52-week highs.<\/p>\n By contrast, the Dow Jones Industrial and S&P 500 both started the day with dips before closing essentially flat.<\/p>\n \u201cI\u2019m not surprised by the reaction today,\u201d Callan said. But \u201cI\u2019d be really careful with it. We don\u2019t know where this war is going to go, when it\u2019s going to end.\u201d<\/p>\n A few months from now, Callan said, the war might affect weapons stockpiles that need to be replaced. But if Iran is \u201cdefanged,\u201d that will likely factor into future weapons procurement decisions.<\/p>\n \u201cThere are a whole range of warplans that included Iran,\u201d Callan said. And those plans will change because of this war.\t\t<\/p>\n Investors like stable, predictable, steady multiyear contracts, Callan said. While purchases of some of the weapons needed to replenish stocks will surge in 2027 or 2028, history shows U.S. acquisitions tend to plateau after surges. Defense Secretary Pete Hegseth has acknowledged that the Pentagon buying patterns are responsible in part for the lack of munition manufacturing capacity, and that changes are necessary.<\/p>\n But Callan said investors will be watching to see if munitions purchases go back to the \u201cboom and bust cycle\u201d typical of the past. <\/p>\n \u201cIn general, investors are looking to this as an area of positive, sustained growth,\u201d Callan said.<\/p>\n Iran\u2019s barrage of drones and cruise missiles has driven heavy use of interceptors like Lockheed Martin\u2019s Terminal High Altitude Area Defense, or THAAD interceptors<\/a>, and the Patriot Advanced Capability-3<\/a>.<\/p>\n The Pentagon has yet to detail exactly what munitions were used to strike Iran, other than to say B-2s used 2,000-pound bombs<\/a>. But the biggest defense primes all account for something in the Air Force arsenal. Boeing manufactures the widely used Joint Direct Attack Munition<\/a>; Northrop Grumman produces the Advanced Anti-Radiation Guided Missile-Extended Range<\/a>, or AARGM-ER; and RTX builds the Advanced Medium-Range Air-to-Air Missile<\/a>, or AMRAAM.\t\t<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/03\/Joint-Air-to-Surface-Standoff-Missile-800x450.jpg\")
A B-1B Lancer releases a Joint Air-to-Surface Standoff Missile during a December demonstration over Holloman Air Force Base, N.M. (Air Force photo by Ethan Wagner)<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/03\/Joint-Direct-Attack-Munition-676x450.jpg\")
A U.S. Airman assigned to the 393rd Bomber Generation Squadron inspects GBU-38<\/a> Joint Direct Attack Munitions prior to loading them on a B-2 Spirit bomber last August. (U.S. Air Force photo by Senior Airman Joseph Garcia)<\/p>\n