If the sibling node tells the story of the "spear" — cheap, mass-producible drones and loitering munitions that fly off to kill on their own — this node is about the "shield": the systems that detect, track, decide, and destroy the other side's swarm of drones. It sounds like just "shooting them down," but the real heart of it is a cost equation: you can't fire a million-dollar missile at a $400 drone. That's exactly why lasers, high-power microwaves, jammers, and cheap interceptors have become one of the fastest-growing money-makers in the defense business.
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News & notes movingCounter-UAS / Counter-Drone
Counter-UAS / Counter-Drone▲impact 4
Saudi Arabia issues two air-raid warnings over Riyadh after new Houthi attacks
Riyadh, Saudi Arabia, faced two air-raid warnings in the early hours of today, September 19, marking the first time the country's capital has seen such alerts since the period when war between the United States and Iran intensified in March and April. Saudi Arabia's early-warning system issued an emergency alert in Riyadh at 4:00 a.m. and again at 6:00 a.m., without disclosing further details. Meanwhile, Saudi Arabia's civil defense authority said the danger had ended shortly after both alerts. Other areas across the country received similar warnings throughout the past night, including Jeddah and Yanbu on the Red Sea, as well as Farasan Island in the Red Sea. The warnings came amid a new wave of attacks Saudi Arabia has faced in September, with the Iran-backed Houthis based in Yemen striking cities in western Saudi Arabia, including energy infrastructure, over the past week. The Saudi government said a drone attack from Iraq, home to several Iran-backed armed groups, forced the East-West oil pipeline to halt operations. In addition, attacks on the pipeline and Iran's closure of the Strait of Hormuz have sharply reduced Saudi Arabia's oil exports and created further problems for Crown Prince Mohammed bin Salman, the kingdom's leader. The renewed conflict also risks affecting Saudi Arabia's efforts to attract investment and tourists, part of its push to diversify the country's economic structure. In October, Riyadh is scheduled to host Saudi Arabia's flagship investment conference, the Future Investment Initiative, with the 2026 annual gathering set to welcome several senior Wall Street executives, including JPMorgan Chase & Co CEO Jamie Dimon and David Solomon of Goldman Sachs Group.
Trump Hopes Iran War Is Near Its End, but Saudi-Houthi Clashes Rage, Risking 4% of Oil Supply
US President Donald Trump told reporters on the evening of Wednesday, September 16, that he hopes the war with Iran, now dragging into its seventh month, is nearing an end, saying Iran wants a deal and that he had been contacted directly by Iran, though he did not disclose further details. The remarks came amid escalating tensions after the Saudi Arabian air force launched strikes in Yemen and Houthi rebels retaliated by firing missiles and sending drones to attack various Saudi cities, including the Red Sea oil port of Yanbu and the Khamis Mushait air base in the south, according to a statement by Yahya Saree, spokesman for the Houthi military. The war erupted on February 28, when the United States and Israel launched attacks on Iran, before Tehran fired back at Israel and US bases in the Persian Gulf countries. The attack on Saudi Arabia that damaged the East-West oil pipeline has prompted oil traders to warn that if the pipeline is forced to halt shipments for an extended period, as much as 4% of global oil supply could be lost. Saudi authorities have not yet specified when the pipeline will be able to resume operation. The spread of the war into Yemen is also compounding the global energy shortage, after the earlier conflict cut off shipping through the Strait of Hormuz, which once carried one-fifth of the world's crude oil and liquefied natural gas. As a result, Brent crude traded at around 108 dollars a barrel on Wednesday, near its highest level since May, while US retail diesel prices surged to a record high of more than 6.30 dollars a gallon, which is becoming major political pressure on the Republican Party ahead of the midterm elections in November. Axios reported, citing sources, that President Trump is scheduled to meet with leaders of the Gulf Cooperation Council, or GCC, which comprises Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman, on the sidelines of the United Nations General Assembly in New York next Tuesday, September 22, to discuss the next steps in the war with Iran. The conflict between the Saudi-led alliance and the Houthis, which has been underway since 2015 and had once calmed under a ceasefire agreement, flared up violently again after the Houthis declared a maritime blockade on Saudi Arabia last July.
Houthis claim Saudi Arabia dropped 40 bombs on Yemen in 24 hours, say they shot down an F-15
The Houthi group in Yemen said on Wednesday, September 16, that Saudi Arabian warplanes carried out 40 airstrikes across three Yemeni provinces over the past 24 hours. Yahya Saree, the Houthis' military spokesman, said in a statement on X that F-15 fighter jets taking off from King Khalid Air Base in southwestern Saudi Arabia launched strikes on the southwestern province of Taiz, the northeastern province of Marib and the northwestern province of Hajjah. Saudi Arabia has not yet commented on the claim, and there is still no information on deaths, injuries or damage from the reported strikes. Xinhua reported that the latest claim came as cross-border clashes intensified, with the Houthis saying on Wednesday morning that they had fired several missiles and sent several drones at a Saudi Aramco facility in the western Saudi city of Yanbu, as well as firing several ballistic missiles at an air base in the city of Khamis Mushait. They also claimed to have shot down a Saudi F-15 fighter jet with a domestically produced surface-to-air missile over the northeastern Yemeni province of Marib, a report Saudi Arabia has likewise not confirmed or commented on. A Yemeni military official told Xinhua that heavy fighting continued on Wednesday around the Kahbub mountains in the southern province of Lahij, a strategic point near the Bab el-Mandeb strait, with five government soldiers and 10 Houthi fighters killed and several others wounded on both sides.
Drone strike hits Saudi Arabia's Petroline pipeline, risking global energy crisis
A drone attack struck Saudi Arabia's East-West oil pipeline, known as Petroline, a 1,200-kilometre conduit that carries crude from production fields in the east across the Arabian Peninsula to the port of Yanbu on the Red Sea coast, forcing Saudi Arabia to temporarily suspend operations on the pipeline. Petroline is regarded as a strategic bypass route that allows Saudi Arabia to export crude to world markets without passing through the Strait of Hormuz, which is facing a blockade crisis from war that has sharply reduced the volume of oil shipped through the usual route. At the same time, global oil inventories are plunging to their lowest level in more than three decades. Leading analysts and research institutions warn unanimously that if repairs to this infrastructure take several weeks, or if the threat of drone attacks persists, the world could enter a genuine energy catastrophe, because millions of barrels per day of export volume would vanish from the system, and Brent crude could surge to 150 dollars a barrel if strategic reserves worldwide are drawn down to exhaustion, which would in turn drive up shipping costs, the cost of living and consumer goods.
Saudi Arabia aims to restart half of major oil pipeline within days
Saudi Arabia is aiming to restore roughly half of the capacity of a major oil pipeline that was shut down after last week's drone attack, according to people familiar with the matter. Saudi Aramco, the state oil company, is working to partially restore the pipeline's throughput by bypassing the damaged section, the people said, speaking on condition of anonymity because the information is not public.
AWS Says Customer Data Lost in Bahrain Region After Drone Strikes
Amazon Web Services has told customers it cannot recover data and resources hosted solely in its Bahrain cloud region, following damage caused by Iranian drone strikes more than six months ago. The company said the impact extended across multiple availability zones, the separate groups of data centers within a single region, and that the scale of the damage exceeded the resiliency measures built into its regional infrastructure. In a separate update, AWS said it is also unable to restore data and resources hosted exclusively in one affected availability zone in the United Arab Emirates, and that replacement infrastructure is being deployed with additional updates expected in the coming months. AWS added that affected customers have largely shifted workloads to other regions and relied on backups where available, and said it remains committed to supporting customers in Bahrain over the long term with another update expected early next year. Amazon has not disclosed a financial impact from the incident.
Fed Expected to Hike Rates as AWS Loses Gulf Data Access
The Federal Open Market Committee is widely expected to raise its benchmark rate to 3.75%-4.00% from 3.50%-3.75% at its September meeting, with a strong August jobs report and hotter-than-expected core CPI supporting the move. Amazon Web Services said it cannot restore access to resources and data hosted exclusively in its Bahrain region after Iranian drone strikes damaged infrastructure, affecting multiple Availability Zones and exceeding what its regional and multi-AZ services were designed to withstand, while one data-hosting zone in the United Arab Emirates also remains affected. SoftBank Group's five-year credit default swaps hovered near a three-year high at around 383.2 basis points, near their highest level since 2023, as investors assessed its funding plans for OpenAI, to which SoftBank has committed $64.6B. OpenAI has held early discussions with large investors about a new capital raise that could value the company at about $1.2T before an IPO, talks initiated by investors that could fund acquisitions and give the company flexibility to delay its IPO by one or two quarters. The Trump administration has appealed a federal court ruling by Judge Beryl Howell blocking the EPA from sending California's vehicle-emissions rules to Congress for potential repeal, a dispute involving stricter standards for cars, trucks, and lawn and garden equipment.
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.
Saudi Arabia says it intercepted Houthi drone before it reached Mecca; Houthis deny involvement
Saudi Arabia said it intercepted and destroyed a Houthi drone before it entered the airspace over the city of Mecca, issuing an alert in the holy city for the first time since 2017. Major General Turki Al-Maliki, spokesman for the Saudi-led coalition that has been at war with the Houthis since 2015, said the attack was intended to provoke the feelings of millions of Muslims and stressed that the security of this holy city is a red line. For his part, Houthi spokesman Hazem Al-Assad denied responsibility for the incident, calling it the same old lie that no one believes anymore. Meanwhile, the Organisation of Islamic Cooperation condemned the attack as an evil act, denouncing the attacks on Mecca and the Medina region as well as the Houthis' continued aggression against Saudi Arabia. The latest incident marks the first expansion of the fighting into Islam's holy city since the Middle East conflict erupted in late February, and it escalates the conflict in Yemen, which is testing the defence agreement that Saudi Arabia, Turkey and Pakistan signed together last month. After the United Nations brokered a ceasefire in April 2022, the situation deteriorated again when the Houthis declared a blockade on Saudi maritime shipping in July, seized strategic points along the Red Sea coast near the Bab el-Mandeb Strait, and attacked the country's East-West oil pipeline last week.
US warns citizens to reconsider travel to Saudi Arabia over Iranian drone and missile fears
The US State Department issued a warning urging American citizens to reconsider travel to Saudi Arabia, citing heightened security risks from Iranian drone and missile attacks. The travel advisory, published on Tuesday, September 15, stated that the United States and Iran began hostilities on February 28, 2026, and that since then Iranian drone and missile threats targeting US interests have occurred continuously. The warning also stated that the Houthis have threatened to attack Saudi Arabia again, adding that debris falling from intercepted drones and missiles also poses a risk. American citizens living and working near energy infrastructure and military bases may face increased risk, particularly in areas near the Yemeni border, which the department has designated as a Level 4 warning area, or do not travel, the highest warning level. Xinhua reported that the advisory came after Saudi Arabia announced warnings in Mecca and other areas, citing attacks by the Houthis, and Saudi authorities said they intercepted and destroyed Houthi drones in southern Mecca on Tuesday evening before the drones could penetrate the no-fly zone over the holy city. The Houthis later denied the allegations.
AeroVironment Partners With Nominal to Digitize Production and Test Data
AeroVironment announced a new collaboration with software provider Nominal to overhaul production and test data management across its autonomous and counter-UAS hardware programs. The partnership focuses on digitizing real-time manufacturing and test data, with Nominal's integrated platform expected to support AeroVironment as it scales output of mission-critical systems for domestic and international customers. AeroVironment is a US defense technology provider with a US$7.8b market cap that builds robotic systems and related services for government agencies and commercial clients worldwide. The company's strategic focus on modular, interoperable, and software-defined platforms, including the newly launched AV Halo open software ecosystem, aligns with the accelerating adoption of AI-powered autonomy and network-centric warfare. The move is seen as addressing operational discipline concerns, including margin pressure after the BlueHalo deal and internal control questions, by centralizing test data from early R&D through end-of-line checks.
AeroVironment Signs Long-Term Agreement With Attalon for Valaris Laser Platform
AeroVironment has executed a long-term agreement with Attalon for delivery of Attalon's Valaris high-energy laser platform across AeroVironment's expanding portfolio of high-energy laser programs. The agreement supports AeroVironment's LOCUST and broader high-energy laser product line as demand for deployable directed energy capabilities continues to grow, with Attalon supplying the mission-ready laser subsystems needed to scale those systems from development and demonstration into sustained operational use. Mary Clum, AeroVironment's president of Space, Cyber, and Directed Energy, said the LTA lets the company proactively scale LOCUST production capabilities ahead of immediate demand, and called Attalon's Valaris S beam-combining laser subsystem central to that effort. To support the agreement and AeroVironment's growing high-energy laser product line, Attalon is investing $15 million to expand production capacity, grow its skilled workforce, and add capital equipment. Attalon Chief Executive Officer John Bergeron said directed energy has reached the moment when delivering capability at production scale, and sustaining it through its service life, becomes the defining challenge.
RTX CEO Calio Sees Defense and Aerospace Demand Driving Cash-Flow Growth
RTX Chairman and Chief Executive Chris Calio said strong demand for air travel and rising global defense spending should support the aerospace and defense company's growth for years, speaking Tuesday with Morgan Stanley analyst Christine Liwag at the firm's 14th Annual Laguna Conference. Calio said RTX has a backlog of about $289 billion, a figure that does not include five framework agreements covering major munitions programs or a recently awarded seven-year, $23 billion Tomahawk contract, and that volumes under the five agreements could rise by two to four times. About 48% of Raytheon's backlog is international, up four percentage points from a year earlier, and sensors and effectors account for about 70% of the unit's sales, with the Coyote counter-drone system having recorded more than 600 drone defeats in operational settings. On the commercial side, RTX expects to deliver a record number of geared turbofan engines this year, and GTF maintenance output rose 40% from a year earlier in the second quarter, helping reduce aircraft-on-ground levels by 25% since the end of 2025. RTX continues to target a medium-term operating margin of 19% to 20% at Collins Aerospace and expects 2026 free cash flow of about $8.6 billion at the midpoint of its forecast, with Calio describing the dividend as sacrosanct.
Houthis Launch New Attacks on Saudi Arabia, Disrupting Global Oil Exports
Yemeni officials revealed that the Iran-backed Houthi rebels have launched a new wave of attacks on targets in Saudi Arabia, while advancing to seize trench-digging positions along the Red Sea coast, forcing the Saudi government to urgently convene an emergency meeting in Riyadh to find a rapid response. Meanwhile, the Gulf Arab states announced they are postponing negotiations with Iran, deepening fears that the war will widen and disrupt global oil exports. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, said on the morning of September 15 via X that the stakes over oil and the strategic strait have now changed, and stressed that there will be no negotiations whatsoever until Iran's conditions are met. On the same day, the yield on 10-year U.S. Treasury bonds surged to its highest level in 19 years, or since 2007, as investors heavily sold off bonds ahead of the Federal Reserve meeting. Meanwhile, China's National Bureau of Statistics reported that China's retail sales rose only 0.4% in August year-on-year, slowing from a 0.6% rise in July and below analysts' expectations of a 0.8% increase. Industrial output in August jumped 5.2%, accelerating from a 4.5% rise in July and stronger than analysts' expectations of a 4.8% increase. Anthropic launched the Claude for Financial Advisors toolset to help financial advisors by connecting the Claude chatbot to investment data analysis systems and wealth management software from leading firms such as BlackRock, Charles Schwab, and Addepar.
Dollar Strengthens on Middle East Crisis, Oil Surge Fuels Safe-Haven Buying
The US dollar strengthened against major currencies in New York foreign exchange trading on Monday, September 14, as tensions in the Middle East pushed oil prices sharply higher and investors rushed to buy the dollar as a safe-haven asset. The dollar index rose 0.27% to 99.388, with the dollar strengthening against the yen to 154.05 yen from 153.72 yen on Friday, and strengthening against the Canadian dollar to 1.3902 Canadian dollars from 1.3865 Canadian dollars. The euro weakened to 1.1557 dollars from 1.1596 dollars, while the pound weakened to 1.3511 dollars from 1.3525 dollars. WTI and Brent crude prices jumped more than 1% and closed above 100 dollars per barrel after Saudi Arabia announced the shutdown of the East-West Pipeline following a drone attack originating from Iraq, while Houthi rebels opened a new round of fighting by firing long-range missiles and sending dozens of drones to attack an air base in southwestern Saudi Arabia. The dollar also drew support from the yield on 10-year US Treasury bonds, which surged past 5% amid inflation concerns. The CME Group's FedWatch Tool indicated that investors assign a 90% probability that the Fed will raise interest rates by 0.25% after its meeting concludes on Wednesday, September 16.
UAE Reviews 5-Gigawatt AI Data Center Plan as War Threats Escalate
The United Arab Emirates is reviewing its strategy for a 5-gigawatt AI data center project, an infrastructure undertaking valued at 1 billion dollars, after conflict with Iran spilled over and undermined security stability in the Persian Gulf region. The project, designed to be centralized on a 26-square-kilometer site in Abu Dhabi and intended as one of the largest technology infrastructure projects outside the United States, must urgently shift from centralization to risk diversification. The UAE government and major capital groups such as G42 are driving this strategic adjustment. Key triggers include attacks on Amazon Web Services cloud and data center infrastructure earlier this year, as well as Iran's military revealing coordinates and warning that the Stargate UAE project could become a strategic target. New protective measures under consideration include distributing data centers across multiple locations nationwide, embedding some structures underground, using natural mountain interiors, installing air defense systems and electronic jamming systems, and employing special reinforced-concrete construction materials resistant to explosive force. Meanwhile, the first phase of the project, Stargate UAE, valued at 30 billion dollars, continues under cooperation with partners from the United States, in order to preserve an advantage in accessing Nvidia's advanced AI chip technology in exchange for reducing technology ties with other major powers under global strategic conditions.
Crude oil surges: WTI breaks above $103, Brent tops $108, after Saudi Arabia shuts East-West Pipeline
Global crude oil prices continued to climb, with West Texas Intermediate for October delivery up $3.04, or 3.04%, to $103.09 a barrel, and Brent crude for November delivery up $3.47, or 3.32%, to $108.80 a barrel, after Saudi Arabia announced the closure of the East-West Pipeline amid attacks by the Houthis. The East-West Pipeline is 1,200 kilometres long and allows Saudi Arabia to transport crude oil without passing through the Strait of Hormuz. Over the past several months, the pipeline has carried about 4 to 5 million barrels per day, or roughly 4 to 5% of global oil supply. Meanwhile, Crown Prince Mohammed bin Salman of Saudi Arabia discussed the latest regional situation during a meeting with Admiral Brad Cooper, commander of United States Central Command, in Jeddah. Reuters reported that the Crown Prince sought military assistance from President Donald Trump to strike the Houthis in Yemen, but President Trump declined to authorise US forces to attack the Houthis directly. The Houthis said they fired long-range missiles and sent dozens of drones to attack an air base in southwestern Saudi Arabia, and had earlier seized the port city of Mokha, pushed south to the Bab el-Mandeb Strait, and captured Mayun Island in the middle of the strait, giving them greater control over the shipping route linking the Red Sea to the Gulf of Aden. Iranian Foreign Ministry spokesman Ismail Baghaei said a meeting of Iranian and Arab Gulf foreign ministers scheduled for today in Oman was postponed at Saudi Arabia's request, and rejected reports that the postponement stemmed from the situation between Saudi Arabia and the Houthis as incorrect. The Financial Times had earlier reported, citing sources, that Arab Gulf and Iranian foreign ministers were due to meet on 14 September in Salalah, Oman, to discuss an interim agreement on managing shipping through the Strait of Hormuz. The talks, initiated by Oman, would be the first meeting of senior diplomats from the six member states of the Gulf Cooperation Council with Iran since the United States and Israel launched attacks on Iran on 28 February.
Saudi Crown Prince Discusses CENTCOM Commander Amid Houthi Tightening Grip on Bab el-Mandeb Strait
Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud discussed the latest regional situation and bilateral relations between Saudi Arabia and the United States during a meeting with Admiral Brad Cooper, commander of United States Central Command, or CENTCOM, in Jeddah today. The meeting took place amid intense clashes between the Houthi group in Yemen and Saudi Arabia. Reuters reported that Crown Prince Mohammed bin Salman asked President Donald Trump for military assistance to strike the Houthis in Yemen, but President Trump declined to approve direct U.S. military strikes on the Houthis. Meanwhile, the Houthis disclosed today that they fired long-range missiles and sent dozens of drones to attack an air base in southwestern Saudi Arabia. In addition, last Thursday the Houthis seized the strategic port city of Mokha, then pushed south into the Bab el-Mandeb Strait on Friday and captured Mayun Island, located in the middle of the strait, enabling the Houthis to tighten their control over the Bab el-Mandeb Strait, which is vital to shipping and connects the Red Sea to the Gulf of Aden.
LightPath Posts 92.7% Revenue Jump, $110.9 Million Backlog After China Exit
LightPath Technologies reported fiscal fourth-quarter and full-year results on September 10 that showed annual revenue climbing 92.7% to $71.7 million from $37.2 million, with the fourth quarter alone hitting a record $21.2 million, up 73.8% year over year. Full-year gross margin expanded to 36% from 27.2%, and the fourth quarter came in at 39.4%, as assemblies, modules and cameras rose to 44% of annual sales, while backlog finished at $110.9 million, up 197% from $37.4 million a year earlier, with $85.6 million scheduled for delivery within 12 months. Weeks after the fiscal year closed, the company booked another $24 million in counter-UAS orders, and LightPath also completed its exit from China by selling its subsidiary there for $4.5 million paid out over five years. The fourth-quarter net loss narrowed to $4.1 million from $7.1 million a year earlier, but full-year operating expenses jumped to $45.5 million from $22 million, including a $15.6 million noncash charge tied to G5 Infrared outperforming its earnout targets. CEO Sam Rubin said the Army pushed its Next Generation Short Range Interceptor timeline out by several months and that the redesign of G5's cooled cameras to use Black Diamond glass instead of germanium is behind schedule, while detector lead times have stretched from roughly six months to ten months or more. Hedge fund ownership fell to 20 funds from 27 in the prior quarter, short interest sits at 15.44% of float, and LightPath enters fiscal 2027 with $93.2 million in cash and no meaningful debt.
US imposes tariffs of up to 100% on drone imports, Thailand's exports at risk
The United States has announced additional import tariffs on unmanned aircraft systems and components under Section 232 of the Trade Expansion Act of 1962, with US President Donald Trump issuing a formal proclamation on August 13, 2026, citing national security grounds. Mrs. Arada Fuengthong, Director-General of the Department of Foreign Trade under the Ministry of Commerce, disclosed that the additional tariff rates are divided as follows: goods in Annex I are subject to a 100% tariff, covering unmanned aircraft with a maximum takeoff weight exceeding 25 kilograms, unmanned aircraft equipped with thermal imaging cameras, unmanned aircraft operating bases, and certain key components, effective from September 3, 2026. Goods in Annex II are subject to a 25% tariff, covering unmanned aircraft with a maximum takeoff weight not exceeding 25 kilograms, also effective from September 3, 2026. Goods in Annex III are subject to a 25% tariff on certain components, taking effect from February 9, 2027, or 180 days after the announcement, in order to allow opportunities to relocate or expand production in the United States. Annex IV is a reference document comparing the normal customs classifications of the controlled goods in Annexes I through III with the customs classifications in Chapter 99 of the Harmonized Tariff Schedule of the United States, which operators must verify before exporting. In addition, the United States has set a maximum total tariff rate of 15% for goods from the European Union, Japan, South Korea, Taiwan, Switzerland, and Liechtenstein, and no more than 10% for the United Kingdom, if the specified conditions are met. Thailand is not among the countries granted these special tariff rates. Arada added that Thai export statistics for unmanned aircraft and components reflect that the United States is a key export market. Between 2023 and 2025, Thailand exported unmanned aircraft under tariff heading 8806 to the United States worth 0.78 million dollars in 2023, rising to 3.28 million dollars in 2024 and 8.64 million dollars in 2025, an average annual growth rate of 232.82%. Meanwhile, exports of components under tariff heading 8807 to the United States were worth 75.78 million dollars in 2023, rising to 75.84 million dollars in 2024 and 86.55 million dollars in 2025, reflecting that the measure could significantly affect Thai operators. The Department of Foreign Trade therefore urges Thai operators exporting products related to UAS systems, including unmanned aircraft components, to thoroughly check the lists of goods in Annexes I through IV in order to plan to mitigate the impact of the measure, particularly in terms of cost management and pricing.
North Korea fires multiple missiles into Sea of Japan after trilateral drills conclude
North Korea fired multiple missiles into the Sea of Japan today, after South Korea, Japan and the United States wrapped up their trilateral joint drills. South Korea's Joint Chiefs of Staff said the missiles were launched from the Wonsan area in eastern North Korea at about 05:20 and flew roughly 250 kilometres. The Freedom Edge exercise ran from Monday to Friday and covered real-time information sharing as well as coordination of air, maritime, missile defence, cyber and medical capabilities. Earlier, North Korean Defence Minister Kim Song Gi criticised the drills as a major security threat, pledging to take strong and appropriate countermeasures. The latest launch came three weeks after North Korea fired about 12 short-range ballistic missiles eastward from an area near Pyongyang on 20 August.
Saudi Arabia Holds Off Retaliation for Drone Strike on East-West Pipeline After Tracing Origin to Iraq
Saudi Arabia's Ministry of Foreign Affairs said on Friday, September 11, that the drone attack on the East-West Pipeline, which injured people and damaged the pipeline, originated from Iraqi territory. The pipeline is a project in which Saudi Arabia has invested heavily, and it is used to transport crude oil from the country's eastern oil fields to Yanbu, a port city on the Red Sea, allowing Saudi Arabia to ship oil without passing through the Strait of Hormuz. The ministry said the government had decided to hold off on retaliating for the attack for now, at the request of the Iraqi prime minister, to give the Iraqi government the opportunity to take the necessary measures to prevent attacks on Saudi Arabia from Iraqi territory. It condemned the attack and said Saudi Arabia reserves the right to take all appropriate action to protect the country's sovereignty, security, facilities, and people. The Iraqi military welcomed Saudi Arabia's decision to hold off on retaliation, condemned any attack that threatens Saudi Arabia's security, and said it had ordered an investigation into those behind the incident.
AeroVironment Q2 Revenue Beats Estimates on Record Defense Contract Wins
AeroVironment reported second-quarter CY2026 revenue of $480.5 million, up 5.7% year on year and ahead of analyst estimates of $457.6 million, while adjusted earnings per share of $0.59 far exceeded the $0.25 consensus. The company reconfirmed full-year revenue guidance of $2.18 billion at the midpoint, which came in 0.7% below analysts' estimates, and reiterated full-year adjusted EPS guidance of $3.18 at the midpoint, though its EBITDA guidance of $315 million at the midpoint fell short of the $318.2 million analysts expected. Management pointed to major U.S. Army awards, including a $465 million Enduring High-Energy Laser program for its LOCUST directed energy platform, a $117 million Long-Range Reconnaissance contract for its P550 unmanned system, and a $51 million award for Switchblade 600 loitering munitions, alongside international orders such as a Puma procurement for Germany's LARUS program and the first direct commercial sale of the LOCUST laser weapon system to an international ally. AeroVironment ended the quarter with a record $1.5 billion funded backlog, up 37% year on year, providing 86% revenue visibility to the midpoint of full-year guidance, and is expanding capacity through a $100 million innovation center in Southern California, added production space in Salt Lake City, and new or expanded operations in Albuquerque and Huntsville. Chief Financial Officer Sean Woodward cautioned that the pace of government budget approvals remains a potential risk factor even as visibility stays high.
Northrop Grumman Expands Central and Eastern Europe Defense Partnerships at MSPO
Northrop Grumman is expanding its industrial partnerships in Central and Eastern Europe as NATO members strengthen air defenses, increase weapons production and improve their ability to detect threats across multiple domains. The defense contractor announced new preliminary agreements with companies in Estonia and an expanded collaboration with Polish military-vehicle manufacturer Huta Stalowa Wola, unveiled at the MSPO International Defense Industry Exhibition in Kielce, Poland. Under the Estonian memorandums, Go Craft would provide defense-system integration and DefSecIntel would handle specialized mast fabrication and production in support of Northrop's Integrated Battle Command System, or IBCS, which is in full-rate production and already operational with the U.S. Army and Poland. The deepened Polish relationship covers technology transfers, servicing and production for the Bushmaster family of chain guns, which are installed on Poland's Rosomak armored personnel carriers and Borsuk infantry fighting vehicles and are used by the United States and 65 allied countries. Northrop also said it remains in discussions with Poland about the potential sale of its E-2D Advanced Hawkeye airborne command-and-control aircraft, and it highlighted Raid Hunter, a short-range air-defense system using guided 50-millimeter interceptors to counter drones, coordinated drone swarms and cruise missiles. The company did not disclose contract values, delivery schedules or expected financial contributions, and the memorandums do not guarantee future orders.
AeroVironment Posts Record Q1 Revenue of $480 Million, Reaffirms Fiscal 2027 Guidance
AeroVironment reported record first quarter fiscal 2027 revenue of $480 million, with funded backlog of $1.5 billion, adjusted EBITDA of $53 million and bookings of $683 million, and reaffirmed its full-year guidance. The company reiterated fiscal 2027 revenue guidance of between $2.125 billion and $2.225 billion, adjusted EBITDA of between $305 million and $325 million, and non-GAAP adjusted EPS between $3.02 and $3.34. Funded backlog rose 37% from the same period last year, and total funded and unfunded backlog stood at approximately $2.8 billion, with a book-to-bill ratio of 1.4x for the quarter. The Autonomous Systems segment contributed $346 million, or 72% of total company revenue, while the Space, Cyber and Directed Energy segment contributed $134.5 million, or 28%. Among the quarter's awards, AeroVironment won a nearly $465 million contract for the U.S. Army's Enduring High-Energy Laser program, described as the first ever production contract for directed energy systems in U.S. military history, and a sole-source $500 million IDIQ for its Titan RF platform under the Joint Interagency Task Force 401 Domestic Shield program, which included an initial $80 million contract tied to the Golden Dome initiative.
AeroVironment Jumps 5% on First International LOCUST Laser Order
AeroVironment shares rose 5% to $147.90 in early Thursday trading after the company announced its first international commercial order for the LOCUST directed-energy counter-UAS laser weapon system, a $50 million deal covering an initial delivery of systems and associated support. The order follows AeroVironment's selection for the U.S. Army's $464.8 million Enduring High Energy Laser production contract, which the company describes as the first production award for high-energy laser weapon systems in U.S. history. The company also reported fiscal Q1 2027 adjusted EPS of $0.59, beating the $0.2479 consensus, on revenue of $480.49 million that grew 5.7% year over year, with the Autonomous Systems segment contributing $346 million, up 21%. Funded backlog reached a record $1.5 billion and management reaffirmed fiscal 2027 revenue guidance of $2.125 billion to $2.225 billion. CEO Wahid Nawabi said LOCUST gives customers an affordable, scalable way to defeat drone threats without relying solely on expensive interceptors, and the company says engagements cost less than $10 per shot; management framed LOCUST as a potential half-a-billion-dollar-plus annual franchise over time. The move was company-specific, with the Defiance Drone and Modern Warfare ETF down 1% and the SPDR S&P 500 ETF Trust off 0.46%, while Ondas slipped 1% to $7.21 and Unusual Machines held steady at $24.34; AeroVironment stock remains down 39% year to date.
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.
L3Harris Selected by U.S. Navy for Counter-Drone Systems
L3Harris Technologies announced Tuesday that the U.S. Navy has selected the defense contractor to supply its Vampire counter-drone systems, expanding the military's integrated defense network against unmanned threats. Financial terms and delivery schedules were not disclosed. Vampire is a self-contained weapons system designed to detect, track, and engage drones, and L3Harris is ruggedizing it for maritime operations, including coastal missions. The selection reflects growing Pentagon demand for counter-drone technology as inexpensive unmanned aircraft pose increasing threats. Tony Calderon, president of Targeting & Sensor Systems at L3Harris, said Vampire meets the Navy's unique requirements for littoral counter-unmanned systems defense. L3Harris also supplies Vampire to the U.S. Army and can integrate it with its Wraith Shield software and Drone Guardian system for layered protection. The announcement coincided with L3Harris disclosing a seven-year, $4.7 billion contract from Lockheed Martin to produce propulsion systems for PAC-3 Missile Segment Enhancement interceptors, its largest such contract to date. L3Harris broke ground in June on two facilities in Camden, Arkansas, to expand PAC-3 production, with operations expected to begin in 2027. Shares of L3Harris were little changed on Tuesday.
Motorola Solutions reported second quarter 2026 non-GAAP earnings of $4.41 per share, up 24% year over year, with revenue growing 13% and full-year guidance raised. Despite the strong results and the planned $1.5 billion acquisition of counter-drone specialist D-Fend Solutions, the stock has eased 0.9% over the past day and 3.7% over the past week, following a 6.8% one-month and 14.1% three-month gain. The company's three-year total shareholder return stands at 71.2%, while the five-year return is 104.6%, though the one-year return is slightly negative at 1.2%. The most followed narrative places Motorola Solutions' fair value at $521.82, above the last close of $468.05, suggesting a 10.3% undervaluation, but the current P/E of 36.3x exceeds both the US Communications industry average of 33.9x and a fair ratio of 27.6x. The company's shift toward software and recurring services, including command center and video solutions, is driving operating leverage and margin expansion, supported by strong hardware attachment rates and growing international SaaS deployments.
AeroVironment has secured a $464.8 million U.S. Army contract for its LOCUST X3 laser weapon systems, marking the first production deal for directed energy weapons in U.S. history. The agreement transitions laser systems from testing to battlefield production, positioning AeroVironment as a key supplier of next-generation defense technology. This contract creates a new long-term platform for revenue and technology development, distinct from its previous work on international expansion, Mars helicopters, and munitions. The company, with a $7.3 billion market cap, will focus on scaling production volumes, integrating LOCUST X3 onto platforms like JLTV, and expanding its Albuquerque facility with a planned $30 million investment. These factors will determine whether the program scales on time and converts into repeat Army funding.
Airbility Raises KRW 6.5 Billion Series A Led by Sazze Partners
Airbility, a South Korean deep-tech aerospace and defense company, has raised USD 4.7 million (KRW 6.5 billion) in a Series A funding round led by Silicon Valley-based global VC Sazze Partners, bringing its total funding to USD 7.6 million (KRW 10.5 billion). Existing investor Stonebridge Ventures participated with a follow-on investment, and Industrial Bank of Korea joined as a new shareholder. The company will use the proceeds to advance its integrated counter-UAS portfolio, which includes the AB-U10 net-gun interceptor and the AB-U60 mothership platform, and to build production capacity for global deployment. Airbility plans to commercialize the AB-U10 by the end of 2026 and two new interceptors, the AB-U2 and AB-U4L, in the first half of 2027, with the AB-U60 targeted for launch in 2027. The company is in commercial discussions with counterparties in more than nine countries and aims to reach KRW 50 billion in cumulative revenue by 2028.
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.
Iran Launches Drone Strike on Al Minhad Air Base in UAE
Iran's military launched a drone attack on Al Minhad Air Base in the United Arab Emirates early this morning, targeting U.S. military personnel and helicopter positions in retaliation for the killing of members of the Islamic Revolutionary Guard Corps and Iranian civilians on Larak Island. Iran's state television reported, citing a statement from the Iranian military, while UAE authorities have not yet commented. The attack follows a U.S. operation against two rocket launchers on Larak Island, located about 660 kilometers east of Kharg Island, prompting Iran to fire missiles in response at a U.S. base in Jordan. U.S. officials said the strike on Larak Island was to prevent the laying of mines in the Strait of Hormuz, while U.S. Central Command confirmed it was a limited and precise strike to eliminate an imminent threat. Jordan's military intercepted eight missiles, and Iran has vowed to retaliate and punish the United States severely.
Change Agents Joins Seagate Partner Program for AI Defense
Change Agents Corporation, a developer of agentic AI software advancing into autonomous air defense and counter-UAS technologies, has been accepted into the Seagate Partner Program, gaining access to Seagate's partner resources including product information, training, and sales tools. The company, listed on Nasdaq as CHGA, expects this partnership to expand its engagement with the technology ecosystem as it pursues its strategy in AI, autonomous surveillance, and defense systems. Change Agents recently formed Autonomous Air Defense LLC to pursue opportunities in AI-enabled drone surveillance and counter-UAS technologies, and is evaluating strategic acquisitions and partnerships. The company believes enterprise-class storage is critical for data-intensive AI workloads and mission-critical computing environments. Michael Mathews, Director of Change Agents, emphasized the importance of industry engagement and partnerships in capitalizing on the growing global counter-UAS market.
ParaZero Secures First DefendAir Order From U.S. Federal Agency
ParaZero Technologies has secured its first DefendAir order from a U.S. federal agency, marking the company's entry into the U.S. government Counter-UAS market. The order includes DefendAir net launchers, Net Pods, and an on-site training program delivered by ParaZero personnel. The company views the contract as an important step in expanding DefendAir across government, defense, and security markets. No contract value, number of systems ordered, or expected revenue contribution was disclosed.
Motorola Solutions has completed its acquisition of counter-drone technology firm D-Fend Solutions for $1.5 billion. The deal adds D-Fend's radio-frequency cyber-takeover platform, which can identify and safely land unauthorized drones without jamming, to Motorola's public-safety ecosystem. Management expects the acquisition to be slightly accretive to earnings in 2027, citing D-Fend's existing profitability and growth profile. Motorola's second-quarter 2026 revenues rose 13% year over year to $3.1 billion, with free cash flow of $414 million and a record backlog of $15.6 billion.
Putin warns Ukraine after attacks on economic targets, threatens retaliation on vulnerable points
Russian President Vladimir Putin warned that Ukraine is the side escalating attacks on Russia's economic infrastructure, and threatened that Russia will retaliate by targeting Ukraine's most important and vulnerable economic sectors. In an interview with Russian television reporters on Saturday, August 22, Putin said Ukraine is trying to damage the Russian economy, but such actions open the way for Russia to respond in kind. Recently, Ukraine has increased its use of drones to attack Russia's economic infrastructure, especially oil refineries and warehouses of online retail businesses, which Ukraine views as key infrastructure supporting Russia's war effort. Russia has responded by also attacking Ukraine's economic infrastructure, including routes and infrastructure related to Ukraine's grain exports through the Black Sea. However, Putin said the impact on Ukraine's agricultural exports will not cause global food shortages, because Russia can replace Ukraine's export volumes, even though Russia's own grain export infrastructure has also been targeted by Ukrainian attacks. Previously, Russia and Ukraine had an agreement brokered by Turkey to guarantee the safety of grain exports through the Black Sea, but Russia withdrew from the agreement in 2023. At the same time, Putin reiterated that Russia remains open to peace talks with Ukraine, but negotiations must be based on realities on the ground rather than what he called strange proposals that Ukraine sent to Russia through intermediaries.
US-China high-tech rivalry intensifies ahead of summit
As the United States and China vie for dominance in high-tech, their exchanges are growing sharper ahead of a summit scheduled for September 24. In late July, the US Federal Communications Commission banned imports of foreign-made humanoid robots, citing information-leak risks, with Chinese players such as Unitree Robotics in mind. China's Ministry of Commerce countered by tightening export controls on drones bound for the US, and in August the US administration imposed tariffs of 15 percent on polysilicon products, a key raw material for solar power and semiconductors, and up to 100 percent on drones. A former senior US trade representative official noted that both sides are probing how far they can go without crossing a line that would jeopardize the summit. At the May summit, the two sides agreed to establish a trade committee and are expected to cut tariffs by 30 billion dollars each on items that pose no national security threat.
Trump's New Drone Tariffs Give AeroVironment, Kratos and Red Cat a Policy Tailwind
President Trump signed a proclamation on August 13 imposing sweeping new tariffs on foreign drone imports, giving American manufacturers AeroVironment, Kratos Defense & Security Solutions, and Red Cat Holdings a structural policy advantage. The order, issued under Section 232 of the Trade Expansion Act, sets a 100% ad valorem tariff on heavy industrial and military-grade drones weighing more than 25 kilograms or equipped with thermal imaging, as well as docking stations and other crucial hardware, while smaller commercial and recreational drones face a 25% tariff. Core tariffs take effect September 3, with certain non-sensitive component tariffs delayed until February 2027, and the Commerce Department is directed to establish an onshoring program allowing duty-free component imports for companies committing to new US manufacturing before January 2029. AeroVironment is seen as the biggest direct beneficiary given its position in small tactical drones and loitering munitions for the US military, while Kratos gains support for its high-volume attritable drone push under the Pentagon's $1.1 billion Drone Dominance program targeting 300,000 low-cost attack drones by end-2027, and Red Cat benefits from reduced reliance on Chinese components, especially from DJI, which is fighting a December 2025 FCC ban in federal court. Hedge fund ownership declined for AeroVironment from 40 to 37 funds in the first quarter, while Kratos rose from 41 to 46 funds and Red Cat from 16 to 23 funds, reflecting varied institutional sentiment. The bear case notes scheduling risk with core tariffs not effective until September 3 and some component charges deferred to 2027, plus allied nations facing reduced rates of 10-15% instead of 100%, which may limit the domestic demand boost.
Powerus and Aureus Greenway Announce $22.3 Million Counter-Drone Contract
Powerus, a U.S.-based autonomous systems company, has executed a commercial contract valued at approximately $22.3 million to provide networked counter-unmanned aircraft system detection, tracking, classification, and early-warning capabilities for critical oil and gas infrastructure in the Middle East. The agreement covers hardware, software, site activation, installation, and a 24-month integrated maintenance program, with unified command and control at the customer's operations center. The system architecture is designed to support the further integration of Powerus' Guardian interceptor technology as operational requirements evolve. The identity of the contracting customer and specific deployment locations are not being disclosed. Powerus is in the process of merging with Aureus Greenway Holdings Inc., whose registration statement on Form S-4 was declared effective by the U.S. Securities and Exchange Commission on August 12, 2026, with the combination expected to close in early October 2026.