Defense stocks rally after Israel launches strikes on Iran, but reaction may be exaggerated

From Morningstar.: 2025-06-16 03:56:00

On June 13, Israel launched strikes against Iranian facilities, boosting global defense stocks by up to 4%. However, defense contractor rallies may be overstated, as prolonged conflict can strain budgets and redirect funds. The idea that more combat equals more weapons purchases or defense spending may not hold up fundamentally.



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