When the world rushed to build more factories stamping out 155mm artillery shells, most people thought the problem was steel and lathes. But the real bottleneck the Ukraine war exposed isn't the empty "shell" — it's the propellant and explosives (energetics) packed inside, made in chemical plants the West has let dwindle to a shockingly small number. This is the story of the "dumb" shell that became the most fragile point in global security.
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Lockheed Martin Signs JATM Framework Agreement With U.S. Department of War
The U.S. Department of War signed a landmark framework agreement with Lockheed Martin to rapidly scale production and delivery of the AIM-260 Joint Advanced Tactical Missile, establishing a multi-year procurement pathway under the Trump administration's "Arsenal of Freedom" framework. The AIM-260 JATM is designed to replace the legacy AIM-120 AMRAAM with significantly extended range, advanced signal processing and superior lethality against peer and near-peer air threats. Lockheed Martin is the lead prime contractor, while Northrop Grumman supplies advanced solid rocket motors, warheads and sensor technologies and has delivered more than 1 million tactical solid rocket motors. RTX Corporation, the legacy manufacturer of AMRAAM, is working with the U.S. government and NATO allies to scale AMRAAM production to at least 1,900 units per year, and Boeing and General Dynamics also stand to benefit as suppliers of navigation, guidance, energetics and structural components. The framework is expected to benefit defense-focused exchange-traded funds, including the iShares U.S. Aerospace & Defense ETF with $12.54 billion in net assets, the Invesco Aerospace & Defense ETF with a market value of $7.63 billion, and the State Street SPDR S&P Aerospace & Defense ETF with $6.13 billion in assets under management.
GM Delivers First PAC-3 Patriot Missile Components to Lockheed Martin
General Motors has delivered its first components for Lockheed Martin interceptor missiles, providing precision castings to house the weapon for PAC-3 Patriot missiles as the defense contractor boosts production to rebuild US stocks amid the Iran war and meet international demand. Lockheed and GM signed a formal contract agreement on August 6 and the first batch of PAC-3 components was delivered August 28, a 22-day turnaround that Tim Cahill, president of Lockheed Martin Missiles and Fire Control, called extraordinary and evidence of the company's focus on execution. Lockheed plans to triple the volume of PAC-3 production to 2,000 by the end of next year, Chief Executive Jim Taiclet said Thursday at a Morgan Stanley conference, adding that significant international demand means the company is targeting even greater than a tripling of volumes, though building the supply chain will take time. The deliveries come as government reports flag eroded US munitions supplies: the Department of Defense Inspector General said this week that expenditure on Operation Epic Fury has resulted in strategic inventory shortfalls and revealed industrial base bottlenecks, while a September 15 Congressional Budget Office report cited reduced interceptor inventories for several years and put the Iran conflict's total cost to the US military at around $38 billion as of August 1. GM, which has targeted defense as a growth area, expects defense revenues of $700 million in 2026, Chief Executive Mary Barra said in July, after the Army ordered more than 10,000 infantry squad vehicles following an initial procurement of 1,200.
Russia strikes Kyiv in air raid, Ukraine hits Yaroslavl oil refinery with drones
Russia launched airstrikes across Ukraine early on the 17th, while Ukrainian drones attacked one of Russia's largest oil refineries, in Yaroslavl. According to the Ukrainian Air Force, Russia fired 157 missiles and drones, targeting mainly Kyiv, Zaporizhzhia and Odesa regions, and air defense units shot down 131 targets. In Kyiv, at least 16 people were injured and water supplies were cut off in the eastern part of the city, while six people were injured in Odesa. According to Yaroslavl region governor Yevraev, a fire broke out at the Yaroslavl refinery but was extinguished. The refinery is located about 280 kilometers northeast of Moscow and is jointly owned by Rosneft and Gazprom Neft, with the capacity to process about 15 million tons of crude oil a year, or roughly 300,000 barrels per day. Russia's Defense Ministry said it struck Ukrainian metallurgical and electronics companies, defense plants, and energy and transport infrastructure, and that it shot down 641 Ukrainian drones over the course of a night. U.S. President Trump posted on social media on the 14th that the two countries had agreed to halt attacks on energy facilities, but both Russia and Ukraine have made clear they have not reached a ceasefire agreement, and the Yaroslavl refinery is the second Russian refinery to be attacked since Trump's post.
Guoke Military Industry's 466 million yuan military trade order expected to be delivered within 2026
Guoke Military Industry's management responded on September 17 at the 2026 semi-annual results briefing to market concerns about the delivery progress of the 466 million yuan military trade order and the shift of operating cash flow from positive to negative. Vice Chairman and General Manager Huang Junhua said that the wholly-owned subsidiary Aerospace Jingwei signed a contract last October for 466 million yuan of military trade product engine charge, with a performance period until December 25, 2026. As of the end of 2025, revenue of 32 million yuan had been recognized, and the remaining 434 million yuan is being organized for production, testing, and delivery acceptance in batches, with delivery planned to be completed within 2026. However, the order's implementation is subject to uncertainty from factors such as the international geopolitical environment, overseas demand, procedural compliance approvals, and business negotiation cycles. In the first half of this year, the company's ammunition and equipment segment was under pressure. Net profit of subsidiaries Xianfeng Company and Jiujiang Guoke fell 98% year-on-year and turned from profit to loss respectively. Huang Junhua said this was mainly due to delayed signing of order contracts, with multiple intelligent and new-type ammunition and fuzes still in the research, trial production, and appraisal stage, and that the performance pressure was a phased fluctuation. Net operating cash flow turned from positive to negative year-on-year, mainly because delayed contract signing postponed the disbursement of commencement payments. There has been no trend-based adjustment in the military prepayment model. Contract liabilities surged 232% from the beginning of the period, and inventory growth was due to production and stockpiling organized according to orders in hand. The power expansion project has fully commenced. Once completed, it will expand solid power charge and power module production capacity, taking into account military products, military trade, and commercial aerospace supporting demand. In terms of performance, the company achieved operating revenue of 384 million yuan in the first half of 2026, down 8.02% year-on-year, and net profit attributable to shareholders of the listed company of 59.0569 million yuan, down 23.41% year-on-year.
World News Roundup: UN Flags Major War as Global Risk, Saudi Arabia Issues Alert, South Korean Court Orders North Korea to Pay 44.6 Billion Won
A United Nations survey found that people around the world are increasingly worried that a large-scale war is a global risk that could materialize in the near future. Meanwhile, Saudi Arabia declared a security alert covering multiple areas on Tuesday, September 15, including the city of Mecca and the city of Jeddah, after being repeatedly attacked over the past week by Iran-aligned armed groups. A South Korean court ordered North Korea to pay 44.6 billion won, or 32.5 million US dollars, in damages to the South Korean government over the destruction of the inter-Korean liaison office building in 2020, marking the first time in history that the South Korean government has sued North Korea and won. Meanwhile, the US Congressional Budget Office disclosed that the war between the United States and Iran over the past six months has already consumed more than 38 billion US dollars in budget spending, with that figure expected to rise by another 3 billion US dollars per month, and it could push inflation up by 0.5% during the first three months of 2027. Separately, Finance Minister Ekniti Nitithanprapas said in an interview with Bloomberg Television yesterday that Thailand may impose an excise tax of around 30% on fully imported electric vehicles, the first disclosure of the rate that could be used to encourage automakers to produce in the country.
CBO Says Iran War Burned $38.1 Billion of U.S. Budget, Depleting Missile Interceptor Stockpile by Two-Thirds
The war with Iran has cost the U.S. Department of Defense a total of $38.1 billion through August 1, and could add another $2 billion to $3 billion per month if the fighting drags on. The Congressional Budget Office, or CBO, estimates that more than half of the cost came from procuring missiles and munitions to replace those expended, while costs from increased flying hours came to $10.4 billion and higher oil prices added another $2.7 billion. The war has also reduced the U.S. stockpile of missile interceptors by as much as two-thirds of the level that existed as of June 2025, largely because the United States helped Israel intercept Iranian attacks, and the CBO says replenishing the stockpile could take at least five years even with expanded production capacity. On the inflation impact, the CBO estimates that the Personal Consumption Expenditures price index, or PCE, the inflation gauge the Fed watches most closely, will rise 0.5 point by the first quarter of 2027, while core PCE is expected to be 0.3 point higher, with gasoline and other fuel prices accounting for roughly 40% of the increase in goods prices caused by the war. The release of the new projections may intensify debate over whether the cost of this war was worthwhile, after Trump initially said the war would last only a few weeks, while Democrats campaign on an anti-war platform ahead of the U.S. midterm elections on November 3.
US Said to Plan $2.8B Bomb Sale to Israel, Largest in Years
The United States is preparing to provide Israel with thousands of bombs, the largest single transfer of such weapons in years, in a potential arms package worth as much as $2.8B, The Washington Post reported. The proposed sale is the latest in a series of Trump administration steps to improve Israel's military capacity. The package includes as many as 20,000 MK-84s and 20,000 BLU-117s, as well as up to 20,000 I-2000 Penetrator warheads, weapons described as extremely lethal. Separately, the Iran war has cost an estimated $33.4B as of June 29, according to a report on Operation Epic Fury from the lead inspector general of the Department of Defense submitted to Congress. Iranian strikes destroyed or damaged dozens of U.S. aircraft and drones, including four F-15E fighter jets, one F-35A and one A-10, with the F-35A costing about $92M per plane and the F-15E over $60M per unit.
Iran War Cost Reaches $33.4B as U.S. Munitions Shortfalls Mount
The Iran war has cost an estimated $33.4B as of June 29, according to a report on Operation Epic Fury from the Lead Inspector General of the Department of Defense submitted to Congress. That total comprises $22.3B for expended munitions, $7.4B of cumulative obligations for incremental Operation Epic Fury costs, and $3.7B in equipment losses, and it excludes costs for infrastructure repairs. The munitions expenditure has resulted in strategic inventory shortfalls and revealed industrial base bottlenecks for munitions resupply, according to the Office of the Under Secretary for Acquisition and Sustainment. Iranian strikes destroyed or damaged dozens of U.S. aircraft and drones, including four F-15E fighter jets, one F-35A and one A-10, with the F-35A costing roughly $92M per plane and the F-15E over $60M per unit, while hundreds of buildings at U.S. bases across Kuwait, Bahrain, Qatar, the United Arab Emirates, Saudi Arabia, Iraq, Oman and Jordan were also damaged. Damage to U.S. diplomatic facilities in Iraq, Kuwait, Saudi Arabia and the UAE is estimated at about $184M, and the report noted seven U.S. service members killed in action from Feb. 28 to June 30, seven killed in non-hostile events during Operation Epic Fury combat operations, and 417 wounded in action.
Fed Expected to Hike Rates as AI Fears and Iran War Rattle Markets
Pre-market futures fell Monday as AI concerns and the ongoing war in Iran weighed on sentiment, with the Dow down 184 points, the Nasdaq down 469 and the S&P 500 down 48 points. A former OpenAI and Anthropic employee warned of dangers to humanity from unregulated AI, sending Marvell Technologies and AMD down more than 6% in early trading while software makers CrowdStrike and ServiceNow rose. Oil prices climbed 4% to $104 per barrel on WTI and $109 per barrel on Brent crude, with $120 oil now seen as a real near-term possibility. The 10-year bond yield reached 4.983%, its highest since briefly touching 5% three years ago, while the 2-year stood at 4.647%. The Federal Open Market Committee meets Tuesday and Wednesday, with odds of a 25 basis point hike to 3.75-4.00% now around 80% following last week's Consumer Price Index, though Fed Chair Kevin Warsh faces pressure from President Trump to hold rates steady.
Crude oil closes above $100 after worst attack on cargo ships since US-Iran war
West Texas and Brent crude futures both closed above $100 a barrel as investors feared that supply tightness would intensify, after reports of the largest attack on cargo ships since the war between the United States and Iran began in late February. Meanwhile, President Donald Trump of the United States insisted he does not regret deciding to launch war against Iran, and Scott Bessent, the US Treasury Secretary, revealed on Thursday, September 10, that the US government will sanction a major bank next week to pressure Iran into ending a war that has lasted more than six months. The news website Axios reported, citing two US officials, that Prince Mohammed bin Salman, Crown Prince of Saudi Arabia, called President Trump twice last Thursday to urge the United States to launch strikes on the Houthis, but President Trump rejected the request. On the economic front, The Wall Street Journal reported that the US Department of Defense is negotiating a loan of about $5 billion for Fluidstack, an AI cloud startup, to strengthen the US data center supply chain. Meanwhile, Micron Technology announced total compensation for direct production-line employees in Taiwan of up to the equivalent of 35 to 68 months' salary, or at least NT$1.7 million in cash, for fiscal year 2026, and Samsung Electronics and Qualcomm have still not reached an agreement to hire Samsung to produce processor chips using 2-nanometer technology, as they cannot agree on price, which could push production back to next year.
Trump says he has no regrets about starting Iran war, ready to sanction major bank next week
US President Donald Trump has stated he has not the slightest regret over his decision to launch war with Iran, vowing that if he had to do it again he would do exactly the same, even though the conflict has political implications for the US midterm elections. In an interview with Fox News anchor Laura Ingraham on Thursday, September 10, US time, Trump said that if Iran were allowed to have nuclear weapons, the Iranian government would wipe out Israel and the Middle East entirely, and would also launch missiles at cities across the United States. Trump's stance comes as global financial markets brace for a potentially protracted Iran war, after reports that key Trump advisers, including Vice President JD Vance and Secretary of State Marco Rubio, warned the Iran war could drag on for the remainder of Trump's term and could even extend past the presidential inauguration in January 2029. However, Trump continues to insist on claims he has repeated for months that the fighting will end immediately after the midterm elections conclude and will cause oil and natural gas prices to fall as a result. On the economic front, the US government continues to cut Iran off from the global financial network, with US Treasury Secretary Scott Bessent revealing that the US government will sanction a major bank next week, a measure originally scheduled for announcement today, September 11, but postponed due to commemorations marking the 25th anniversary of the September 11, 2001 attacks. Bessent added that the US government had previously sanctioned Egypt's second-largest bank, forcing the closure of its Dubai branch, after finding it had processed transactions transferring up to 1.8 billion US dollars to Iran, and that Turkey's largest bank had also been sanctioned for transactions with Iran, although Bessent did not name the two banks specifically.
Teledyne Energetics UK wins $15.4M drone energetics contract in Europe
Teledyne Energetics UK, a subsidiary of Teledyne Technologies Incorporated, has secured a $15.4M contract with a European defence technology manufacturer to supply specialist energetics products for advanced unmanned systems. The agreement establishes a long-term supply framework with potential total value exceeding $50M as production requirements scale. Teledyne will deliver advanced initiation and energetic solutions designed for compact, high-reliability applications in next-generation European drone platforms. The award reinforces Teledyne's role as a key technology partner in expanding sovereign European defense manufacturing capabilities and supply-chain resilience for unmanned systems. Deliveries under the agreement will begin immediately to support ongoing development activity, with expectations of expanded volume as production increases.
Iran Threatens to Escalate War with US; Trump Expects It to End After Midterms
Iran has signaled it is ready to escalate its war with the United States to a more intense level and will step up retaliatory strikes if the US continues to attack its territory and infrastructure. Meanwhile, US President Donald Trump believes the war, now in its seventh month, could end within a few weeks and expects it to conclude immediately after the US midterm elections in November, scheduled for November 3. An unnamed senior Iranian official said Tehran has no intention of backing down under pressure from the US naval blockade and attacks on Iranian oil tankers, even as domestic economic pressure intensifies, with inflation accelerating to nearly 90% and the rial depreciating rapidly. But Iran's leadership sees the war with the US as a threat to the country's very existence, leaving it with little choice but to keep fighting. There is still no sign of the fighting easing. The US disclosed that one of its warships had to evade an Iranian attack before the US responded by destroying five Iranian energy tankers. Tehran then fired about 20 missiles at an air base in Jordan used by US forces, and also attacked US Navy vessels and several commercial ships. The Wall Street Journal reported that senior US government officials, including Vice President JD Vance and Secretary of State Marco Rubio, raised the possibility that Iran may refuse to soften its stance even as the US increases pressure, and that the war could drag on through the remainder of Trump's presidential term, which ends in January 2029. Energy prices have risen sharply, with Brent crude topping 100 dollars a barrel on Wednesday, bringing its gain to about 65% since the start of the year, while diesel prices at US service stations hit a record high last week.
Kasikorn Thai expects SET today in a 1,610-1,630 range, Brent crude breaks above $100
Kasikorn Securities estimates the SET Index will move in a range of 1,610 to 1,630 points today, with the main pressure coming from the Middle East situation, after Brent crude oil prices surged above $100 per barrel for the first time since July, driven by escalating conflict between the United States and Iran and risks to shipping through the Strait of Hormuz. Meanwhile, the yield on 10-year US government bonds rose to 4.84%, the highest since 2023, after the government announced a plan to buy back long-term bonds worth up to 6 billion dollars, which was lower than the market expected. Yesterday, the SET Index closed at 1,617.89 points, down 4.00 points, or 0.25%, with foreign investors net buying Thai shares worth 3,136 million baht. Short-term strategy still focuses on waiting for pullbacks to accumulate stocks with strong earnings prospects, with today's standout picks being PTTEP and EASTW.
Trump advisers fear Iran war will drag on until 2029
Key advisers to President Donald Trump are warning that the war between the United States and Iran could drag on for the remainder of Trump's term. The Wall Street Journal reported yesterday that advisers, including Vice President JD Vance and Secretary of State Marco Rubio, have discussed the possibility that the conflict with Iran will extend beyond the presidential inauguration in January 2029. Those internal discussions differ sharply from many of Trump's and his advisers' public statements, which indicated the war was nearing an end. Trump told reporters on Wednesday that the war would end immediately after the midterm elections in November. The war is set to enter its seventh month in September, far longer than Trump's original target of a four-to-six-week operation. Oil prices surged past 100 US dollars a barrel this week amid a renewed outbreak of military operations between the two sides, and Trump and Republicans are facing growing public discontent over the Iran war, including its impact on the cost of living, a trend analysts say could affect the party's chances in the midterm elections.
Crack Spread Surges, BOE Governor Watches as Inflation Gauge
The price gap between oil products and crude oil, known as the 'crack spread,' has surged sharply, drawing attention from central bankers monitoring inflation trends. Bank of England Governor Andrew Bailey said on the 8th that he is focusing more on the rapid widening of the crack spread than on crude oil prices themselves, and economists, including those at the European Central Bank (ECB), have increasingly emphasized watching oil product prices. The background is that the Iran war and Russia's invasion of Ukraine have led to the loss of several million barrels per day of oil refining capacity, causing fuel prices to spike. In Europe, gasoline and diesel pump prices have exceeded $370 per barrel equivalent, and the ECB pointed out in late July the inflation risks stemming from refining capacity constraints. Vanguard Asset Management revealed in August that it is hedging against the risk of prolonged US inflation, and US President Trump has urged domestic oil refiners to increase production. According to Bloomberg data, European diesel futures on the 9th were about $75 per barrel higher than North Sea Brent crude, widening from about $21 on January 2. The Bank of England estimates that rising energy prices will push up the CPI inflation rate by about 0.4 percentage points in the second half of this year.
US Gas Prices Set to Hit Record High for Labor Day Holiday
In the United States, as the war in the Middle East pushes up energy costs, gasoline prices are expected to reach their highest level for this time of year during the Labor Day holiday on the 7th. According to Patrick DeHaan, an analyst at fuel price information company GasBuddy, the national average gasoline price on Labor Day is likely to reach $4.03 per gallon, significantly surpassing the previous record for Labor Day of $3.83 set in 2012. GasBuddy reports that the national average gasoline price was about $4.13 per gallon as of the 3rd, about $1 higher than the average for the same period last year. Analysts point out that $4 per gallon is a psychological threshold for many consumers. Gasoline prices are one of the most visible economic indicators for U.S. consumers and can quickly influence perceptions of the overall economy. With prices remaining above $4 per gallon for most of the year, this issue has become a persistent concern for President Trump and the Republican Party. Trump has pledged to lower energy costs and has intensified criticism of oil refiners and fuel retailers in recent weeks. Quan Dossmaratov, a research analyst at consulting firm Wood Mackenzie, notes that the high gasoline prices are primarily a supply-side issue. Both crude oil prices and refining margins have risen due to concerns that energy shipments through the Strait of Hormuz could be disrupted. Meanwhile, attacks on Russian refineries have tightened overall fuel inventories. U.S. refinery utilization has reached 98%, the highest level since 2018, and the government has already extended waivers of the Jones Act and ended summer gasoline regulations early to curb prices. U.S. gasoline inventories fell by 1.2 million barrels last week to 205.7 million barrels, below the five-year average of 217.6 million barrels for August. Other petroleum product prices have also surged, with U.S. diesel prices hitting a new record high this week. Additionally, according to AAA, airfare prices during the Labor Day period are expected to be 20% higher than last year.
U.S. Approves $5.75B in Weapons Sales to Saudi Arabia
The U.S. State Department on Friday approved the potential sale of Joint Direct Attack Munitions-Extend Range to Saudi Arabia for an estimated $5 billion, and a separate potential sale of AGT-1500 engines for an estimated $750 million, totaling $5.75 billion. Saudi Arabia has requested 5,000 KMU-572 and 5,000 KMU-556 JDAM guidance kits, 5,000 BLU-111 500-pound and 5,000 BLU-117 2,000-pound general purpose bombs, and 60 AGT-1500 tank engines, along with related equipment. The State Department said the proposed sale will improve Saudi Arabia's airborne defense capability, strengthen homeland defense, and enhance interoperability with U.S. and Gulf partner forces. Boeing and Honeywell will serve as principal contractors for the JDAM-ERs and AGT-1500 engines, respectively.
US diesel prices hit all-time high, pressuring economy ahead of midterms
US diesel prices hit an all-time high on Friday, climbing to $5.85 per gallon in the retail market, surpassing the previous record of $5.816 set in June 2022. The surge is driven by conflicts in Iran and Russia-Ukraine, which have disrupted supply from the Middle East and Russia, regions that together account for roughly a third of global diesel exports. US stockpiles of distillate fuels are at record lows for this time of year, and East Coast inventories are at all-time lows just as winter heating demand begins. President Trump has pressed refining executives to boost production, but global refiners like Marathon Petroleum and Shell are already running near full capacity. Diesel prices have jumped about 40% since July 18, while oil prices have risen only 5% from their low, raising concerns about broader economic impacts.
US strikes Iran, Iran announces missile and drone retaliation
The United States launched strikes on targets of Iran's Islamic Revolutionary Guard Corps (IRGC) inside Iran at 12:00 p.m. Eastern Time, according to U.S. Central Command (CENTCOM), following attempts to attack commercial ships in the Strait of Hormuz and U.S. personnel in the region. CENTCOM has not disclosed the number and locations of the targets hit, nor the munitions used. President Donald Trump said on Truth Social that the strikes were large and powerful, and were retaliation against Iran after it attempted to lay naval mines in the Strait of Hormuz and fired missiles at U.S. bases in Jordan. He warned that if Iran retaliates, the U.S. will escalate with heavier and more severe strikes. Later, Iran's Tasnim news agency reported that the Iranian military has begun decisive operations, and that U.S. bases and interests across the region will be targeted by Iranian missiles and drones. The situation makes a prolonged war more likely and could create political pressure ahead of the U.S. midterm elections in November. A Reuters/Ipsos poll showed Trump's approval rating at 33%, and only 36% of Americans approve of war with Iran. The strikes mark a new escalation in the conflict, after the U.S. and Iran resumed tit-for-tat attacks over the weekend for the first time in about a month. On Sunday, U.S. forces struck a rocket launch site on Iran's Larak Island, and Iran responded by firing missiles at U.S. bases in Jordan, but they were intercepted. The United Arab Emirates also said it intercepted Iranian drones over its waters. The Strait of Hormuz is the world's most important energy transit route; before the war, about one-fifth of global oil supply passed through it, according to the U.S. Energy Information Administration (EIA). The escalation increases risks to shipping and energy transport through the Strait, which could create volatility in global oil markets.
Goldman Sachs Warns of Global Diesel Crisis, More Than Doubles Refining Margin Forecast
Goldman Sachs has warned that the global refining market is facing tightness due to the war in the Middle East and the conflict between Russia and Ukraine, prompting the bank to more than double its forecast for diesel production margins in 2027. It now expects U.S. diesel margins to be $63 per barrel, up from its previous estimate of $27, and European Union margins to be $49 per barrel, up from just $19. Goldman Sachs analysts noted that increased attacks on refineries in the Middle East and Russia are further limiting already tight global refining capacity, pushing refined product margins to new highs. Currently, disrupted refining capacity is 60% above seasonal averages, while product inventories continue to decline even as some demand has disappeared. The situation is likely to tighten further after Russia extended its diesel export ban until September amid increased attacks from Ukraine. Meanwhile, diesel demand in Brazil, the world's second-largest importer, is rising, and the approaching winter in the Northern Hemisphere in the coming months is likely to increase demand for heating fuel, which could add further pressure to an already tight diesel market.
Jianshe Industry 2026 Interim Report: Special Products Business Drives Growth in Revenue and Net Profit
Jianshe Industry released its 2026 interim report on August 26. Driven by its dual engines of special products and automotive components, the company achieved operating revenue of 2.128 billion yuan in the reporting period, up 40.27 percent year on year. Net profit attributable to the parent company was 67 million yuan, up 37.95 percent, while net profit after deducting non-recurring items was 47 million yuan, up 45.65 percent. Net cash flow from operating activities was negative 50 million yuan, a significant narrowing from negative 854 million yuan in the same period last year, mainly due to the settlement policy for special products. The special products business became the core growth engine, pushing domestic operating revenue up 44.19 percent year on year to 2.076 billion yuan, accounting for as much as 97.56 percent of the total. Overseas revenue fell 32.78 percent year on year. On the civilian products side, the company proactively adapted to the trend of vehicle electrification, steadily developed its new energy vehicle components business, and maintained a leading market share in connecting rod products. Although gross margin declined by 3.03 percentage points to 15.08 percent, net profit still achieved solid growth.
Guoke Military Industry R&D Investment Exceeds 13% of Revenue, Military Trade Business Keeps Breaking Through
Guoke Military Industry released its 2026 semi-annual report. During the reporting period, it achieved operating revenue of 384 million yuan, a year-on-year decrease of 8.02%; net profit attributable to shareholders of the listed company was 59.06 million yuan, a year-on-year decrease of 23.41%; and non-GAAP net profit was 57.54 million yuan, a year-on-year decrease of 6.99%. From the business structure perspective, high-prosperity segments such as solid engine charges and military trade supporting services achieved substantial growth, while ammunition orders declined somewhat. Relying on mature solid power modules and standard ammunition equipment products, the company deepened its military trade supporting layout, and the scale of its military trade business continued to expand, becoming an important second growth curve. In the first half of the year, civilian product revenue was 49.79 million yuan, exceeding the full-year 2025 scale of 41.72 million yuan. In terms of R&D investment, R&D spending in the first half of 2026 was 50.19 million yuan, accounting for 13.07% of revenue; as of the end of June, there were 107 major projects under research, with an estimated total investment scale of 486 million yuan. In terms of capacity building, the power module construction project has fully commenced, subsidiary Aerospace Jingwei completed production line upgrades and transformation, increasing production capacity by more than 20%, and the aerospace power supporting industry project completed land acquisition.
Guangdong Hongda's interim revenue hits 10.1 billion yuan with slight profit growth; operating cash flow shows net outflow of 913 million yuan
Guangdong Hongda released its 2026 interim report, with operating revenue of 10.138 billion yuan, up 10.79 percent year on year. Net profit attributable to the parent company was 520 million yuan, up 3.23 percent, and non-GAAP net profit was 497 million yuan, up 3.28 percent. Net cash flow from operating activities was negative 913 million yuan, a significantly wider outflow than the negative 226 million yuan in the same period last year. Revenue from the defense equipment segment was 510 million yuan, surging 533.79 percent year on year, mainly due to incremental contributions from the newly consolidated subsidiary Dalian Changzhilin. The company plans to distribute a cash dividend of 2 yuan per 10 shares, tax included, to all shareholders.
TotalEnergies CEO sees bearish crude, bullish product markets
TotalEnergies CEO Patrick Pouyanne said the global oil market is bearish for crude but bullish for refined products, speaking at the ONS conference in Stavanger, Norway. Crude shipments continue to move through the Strait of Hormuz without issues, but higher shipping costs have stopped all refined product flows through the waterway, he said. Ukrainian drone strikes have reduced fuel supplies from Russia by 3 million to 3.5 million barrels per day. Pouyanne noted that shipping a very large crude carrier with capacity for 2 million barrels through Hormuz costs about $20 million, while for smaller vessels that transport refined products, this additional expense is too high, resulting in no product tankers moving through Hormuz. Benchmark crude oil trades near $90 per barrel in London, below levels seen at the start of the war, while the premium for products such as diesel compared to crude reached near its highest level in over 15 years.
South Korea says North Korea preparing to send more troops to Russia
South Korea's defense ministry said North Korea is still preparing to send additional troops to Russia, but no signs of imminent movement have been detected, according to information released by a South Korean lawmaker's office on Monday, August 24, 2026. The assessment came after Kim Yo Jong, sister of North Korean leader Kim Jong Un, rejected claims by Ukrainian President Volodymyr Zelenskyy that Pyongyang plans to send up to 50,000 more troops to Russia. North Korea has continued to supply weapons systems to Russia, including short-range ballistic missiles, and has sent more than 15 million artillery shells to Russia, calculated as equivalent to 152-millimeter artillery rounds. South Korean officials assess that North Korean missiles used in the Ukraine war may have improved accuracy based on real-world operational data and technical guidance from Russia. Meanwhile, the Hwasong-12 intermediate-range missile, which can reach Guam, is being prepared for deployment, and intercontinental ballistic missiles have sufficient flight capability to reach the US mainland, but the reentry vehicle capability of their warheads has not yet been confirmed.
Global Diesel Crisis Threatens to Outlast Middle East War
The global diesel shortage is set to persist for months even if the Middle East war ends, as refining capacity outages and export bans tighten supply. Diesel prices in Europe have surged 70% from pre-war levels, and the U.S. diesel crack spread hit a record $102 per barrel on Monday. The International Energy Agency says about 9.6 million barrels daily of Middle East refining capacity, or a fifth of the total, has been knocked out by hostilities, while Russian export bans have removed the world's second-largest diesel exporter from the market. Bank of America analysts warn that U.S. fuel exports, which hit a record 1.9 million barrels daily, are drawing down already tight inventories and pushing diesel cracks toward record seasonal highs. Goldman Sachs notes global diesel stocks were already tight before the war, and FGE NexantECA's Eugene Lindell says Europe has a tremendous diesel problem that will get ugly with extremely high flat prices.
Raytheon Wins $22.9 Billion Tomahawk Production Contract
RTX subsidiary Raytheon has been awarded a seven-year, $22.9 billion contract to accelerate Tomahawk cruise missile production for the U.S. Navy and allies. Under the agreement, Raytheon plans to raise annual Tomahawk output to more than 1,000 missiles and provide associated support, having already delivered three times more Tomahawks in the first half of 2026 than in the same period of 2025. The company will invest in workforce, technology, supply chain, and facilities, working with hundreds of small and mid-sized U.S. suppliers to scale production. The multi-year award provides long-term visibility and could make the Tomahawk program an increasingly important contributor to Raytheon's defense growth.
Zhongtian Rocket first-half net profit 16.9345 million yuan, up 329.31% year on year
Zhongtian Rocket released its 2026 semi-annual report, achieving operating revenue of 383 million yuan, up 27.05% year on year; net profit attributable to shareholders of the listed company was 16.9345 million yuan, up 329.31% year on year. The company plans not to distribute cash dividends, not to issue bonus shares, and not to convert capital reserve into share capital. Second-quarter net profit was 12 million yuan, up 157% quarter on quarter from 5 million yuan in the first quarter.
Pentagon procurement surge to benefit major defense contractors
The Pentagon is pushing defense contractors to rapidly scale production of missile interceptors, munitions, and drones following significant inventory depletion, creating a broad procurement surge across the U.S. defense industrial base. Deputy Defense Secretary Steve Feinberg gave industry leaders 21 days to submit proposals for faster deliveries, while President Donald Trump has pressed contractors to direct more capital toward production capacity rather than buybacks and dividends. Within the roughly $1.5 trillion defense budget request, autonomous vehicles and drone defense at $122 billion and missiles and missile defense at $123.7 billion represent the two largest growth areas. Lockheed Martin and Northrop Grumman are the dominant large contractors with direct interceptor and drone program exposure, while Kratos Defense & Security Solutions and AeroVironment offer more focused drone and counter-drone exposure. Lockheed Martin posted $65 billion in new orders in its most recent quarter, pushing its backlog to a record $230.4 billion, and Boeing and RTX reached framework agreements with the Pentagon to boost production of SM-3 Block IIA and Block IB interceptor components.
Pentagon Awards Lockheed and Northrop Over $3 Billion for Missile Defense
The Pentagon signed a more than $3 billion deal with Lockheed Martin and Northrop Grumman on August 3 to boost production of Patriot and THAAD interceptor missile parts. The agreement includes a $2 billion framework to accelerate PAC-3 MSE production and a $1 billion agreement to expand monthly THAAD component supply over seven years, according to Northrop. The framework aims to triple Patriot production and quadruple THAAD output, and establishes Northrop as a second source supplier of solid rocket motors for the PAC-3 MSE. This follows last week's $58.6 billion contract for Lockheed to produce Patriot interceptor missiles.
Karman raises fiscal 2026 guidance after record Q2 revenue and bookings
Karman Holdings raised its fiscal 2026 guidance after reporting record second-quarter results, with revenue jumping 58% year over year to $182 million and adjusted EBITDA climbing 55% to $55 million. The company now expects full-year revenue of $730 million to $745 million and adjusted EBITDA of $215 million to $222.5 million, representing 57% and 51% growth at the midpoint, respectively. Quarterly bookings approached $500 million, pushing backlog to a record $1.3 billion, which provides 95% visibility to the midpoint of the revenue guidance. Tactical Missiles and Integrated Defense Systems led segment growth with a 55% revenue increase, and Karman plans to acquire Walker Precision Engineering for approximately $94 million to establish its initial European presence, subject to regulatory approval.
National Presto Q2 Earnings Surge 207% on Defense Unit Growth
National Presto Industries reported second-quarter 2026 earnings per share of $2.21, a 206.9% increase from 72 cents a year earlier. Net sales rose 21.7% to $146.6 million, while net earnings jumped 207.9% to $15.9 million. The Defense segment drove the top-line growth with a $27.1 million, or 27.2%, sales increase from higher backlog shipments, and its operating earnings rose 33.5%. Housewares/Small Appliances swung to a $2.2 million operating profit, largely due to a tariff refund following a Supreme Court decision, even as its sales declined 6.2% amid tariff-related retail pricing pressures.
Trump Denies US Weapons Shortage Reports, Threatens Prison for Leakers
President Donald Trump has denied reports that the United States is facing a shortage of critical weapons and missiles, while threatening legal action against those who disclosed the information, stating that leakers could face lengthy prison sentences. Trump asserted on Truth Social that the US possesses a massive arsenal and that defense industry companies are building more factories and production lines than at any time in history. Earlier, The Washington Post reported that Trump was displeased with Defense Secretary Pete Hegseth over weapons shortages, such as long-range guided missiles and interceptor systems, which was one reason for calling off a planned strike on Iran. White House Press Secretary Karoline Leavitt denied that such an incident ever occurred. Meanwhile, a Department of Defense document cites an emergency budget request of 67 billion US dollars, with 18.2 billion dollars allocated for replenishing critical weapons like Patriot interceptor missiles, Tomahawk missiles, and THAAD systems, reflecting concerns over arsenal levels. A CSIS analysis indicates that the Patriot missile stockpile has declined by about 65 percent from pre-conflict levels.
US nearly exhausts long-range missile stockpile in Iran war, raising concerns over capability to counter China and Russia
The United States has used a large number of precision-guided long-range missiles in the war with Iran over the past five months, depleting some weapons stockpiles to near-empty levels and raising concerns within the government that the military may have reduced capability if it faces a new conflict with China or Russia. Three sources told Reuters that the US Army has used almost all of its ATACMS and PrSM missiles during military operations in Iran, marking the first time such ammunition usage data has been disclosed. In addition, the US has used nearly half of its global stockpile of Tomahawk cruise missiles since the war began. Meanwhile, a report by the Center for Strategic and International Studies estimates that from February to July, the US used about 65 percent of its Patriot interceptor missiles, and the number of THAAD interceptor missiles has decreased by at least 38 percent. President Donald Trump dismissed the concerns, stating that the US has more weaponry than any other country in the world and that arms manufacturers are ramping up production at record levels to replenish stockpiles.
CPS Technologies reports Q2 revenue of $8.3 million and completes $9.6 million secondary offering
CPS Technologies announced fiscal second quarter revenue of $8.3 million, up from $8.1 million a year earlier, and completed a secondary offering that raised gross proceeds of $9.6 million. Gross margin narrowed to 14.8 percent from 16.5 percent, and the company posted an operating loss of $0.2 million compared with an operating profit of $0.1 million in the prior-year period. Net income was just under $40,000, or $0.00 per diluted share, versus $0.1 million, or $0.01 per diluted share, a year ago. The company continues funded development work including a controlled fragmentation tungsten warhead for the U.S. Army and a weight-reduction initiative for the Amphibious Combat Vehicle with U.S. Navy funding, and remains on track to move to a new operating facility in the coming quarters.
CSG acquires Gnaschwitz industrial site in Germany, plans over EUR 100 million initial investment
Industrial and technology group CSG has completed the acquisition of the 57-hectare Gnaschwitz industrial site near Bautzen in Saxony, Germany, through its subsidiary CSG Energetic Materials Germany GmbH. The site was acquired from MAXAM, and CSG plans to invest more than EUR 100 million in the initial development phase to establish production capacities for nitroglycerin and nitroglycerin-based products, while also developing ammunition and ammunition component manufacturing. The purchase price was not disclosed. The investment is part of CSG's strategy to build a vertically integrated European value chain for energetic materials and ammunition, following its earlier acquisition of the MSM Walsrode facility in Bomlitz, where it is expanding industrial nitrocellulose production to include energetic grades for ammunition. The Gnaschwitz site, with over 150 years of industrial tradition dating back to 1874, is expected to create up to 125 new jobs and will retain capacity for further expansion, including medium-calibre and tank ammunition assembly.
Northrop Grumman Wins Over $3 Billion in Framework Agreements for Missile Components
Northrop Grumman has signed two multi-year framework agreements worth more than $3 billion to accelerate production of missile interceptor components. The larger $2 billion agreement with the U.S. Department of War covers solid rocket motors and ignition safety devices for the Patriot Advanced Capability-3 Missile Segment Enhancement missile. A separate $1 billion framework agreement with Lockheed Martin will significantly increase monthly deliveries of components for the Terminal High Altitude Area Defense system over the next seven years. The company has expanded manufacturing capacity through investments since 2021, including doubling solid rocket motor production at its Utah facilities and nearly tripling capacity at the Allegany Ballistics Laboratory in West Virginia. Northrop Grumman has invested more than $2 billion in munitions-related technologies and facilities since 2019, with over $1 billion dedicated to solid rocket motor production.
Exxon and Chevron warn high fuel prices will persist due to tight refining capacity
Exxon Mobil and Chevron warned that global supplies of diesel and other refined products will likely remain tight, leading to persistently high fuel prices in the coming months. Both companies reported large jumps in second-quarter refining profits, with Exxon's refining unit collecting $5.5 billion in earnings, up from $1.4 billion a year earlier. Nearly 10% of the world's refining capacity is effectively offline due to the Strait of Hormuz closure, Ukrainian attacks on Russian refineries, and China's export ban, according to Melius Research. Exxon CEO Darren Woods said available capacity relative to demand is the lowest he has ever seen, while Chevron CEO Mike Wirth expects upward pressure on product pricing into the third quarter and beyond. Refined product inventories are approaching historical lows, causing gasoline prices to disconnect from oil prices and trade on storage levels instead.
Russia launches massive attack on Kyiv, killing 9, highlighting shortage of interceptor missiles
Russia carried out a large-scale overnight attack on the Ukrainian capital Kyiv using ballistic missiles and attack drones, killing 9 people and wounding at least 30. President Zelenskyy noted that only one of about 27 Iskander ballistic missiles was intercepted, attributing this to a shortage of interceptor missiles for the Patriot air defense system. Foreign Minister Sybiha urgently called on allies to provide additional air defense and missile defense systems as well as interceptor missiles. Russia's Defense Ministry claimed the targets were facilities for manufacturing, storing, and transporting missile weapons and drones, and also announced that two ships transporting military supplies to a Ukrainian port were attacked in the Black Sea.