A senior Iranian official told Kyodo News that Iran has offered to reopen the Strait of Hormuz within 7 days if the United States begins preliminary steps to reduce military pressure. The proposal has already been sent to the United States through intermediaries and calls for the resumption of negotiations aimed at reaching a permanent agreement to end the fighting between the two countries. Iran plans to use this week's United Nations General Assembly, or UNGA, in New York to hold discussions with countries acting as intermediaries. The official ruled out the possibility of a meeting between Iranian President Masoud Pezeshkian and US President Donald Trump on the sidelines of the gathering, but said progress toward an agreement remains possible, and that the United States must show seriousness and commitment if it wants the diplomatic process to move forward.
RTX wins $105.6M Air Force contract modification for AMRAAM parts
RTX announced on Tuesday that it won a $105.6M firm-fixed-price contract modification for Advanced Medium Range Air-to-Air Missiles parts purchases. The work will be performed in Tucson, Arizona, with completion expected by August 31, 2027. The award includes $61.6M in fiscal 2025 missile procurement funds, $8.4M in fiscal 2025 Navy weapons procurement funds, and $35.7M in FMS funds. The Air Force Life Cycle Management Center is the contracting activity.
Rocket Lab has secured $1.94 billion through an at-the-market share sale to fund its planned Iridium acquisition, replacing a planned $3.6 billion bridge facility and reducing its need for debt financing at the cost of a higher share count. The company also added to its order pipeline with a $190 million award for 20 HASTE hypersonic test flights and a separate $266 million Space Force contract covering at least 12 suborbital missions, and it was selected by Viasat to provide a satellite bus for a protected communications program. Rocket Lab has completed 96 Electron launches, including 17 missions this year. Raymond James initiated coverage with an $80 price target, citing growth opportunities and a potential path toward positive EBITDA and free cash flow by 2027 or 2028, though the company still reports negative free cash flow and operating losses. Shares climbed about 2% Tuesday as investors weighed the defense awards, satellite work and financing progress.
Defense stocks slide as Trump floats Iran peace deal at UN
Aerospace and defense stocks fell broadly Tuesday after President Donald Trump raised the prospect of a negotiated end to the U.S. conflict with Iran during an address to the United Nations, while warning that military action could intensify if Tehran refuses to reach an agreement. V2X fell about 3.8%, Kratos Defense & Security Solutions dropped 3.7% and Karman Holdings declined 3.5%, while BAE Systems was down 2.9%, Northrop Grumman fell 2.8% and Lockheed Martin lost 2.7%; General Dynamics, Huntington Ingalls, L3Harris Technologies and RTX also traded lower. Trump told the UN General Assembly he expects the United States eventually to reach an agreement with Iran and believes Tehran will make a deal after the U.S. midterm elections on Nov. 3, and Reuters reported, citing a senior Iranian official, that Iran offered to reopen the Strait of Hormuz within seven days if Washington reduces military pressure and ends its blockade of Iranian ports, with Iran's UN delegation authorized to restart diplomatic negotiations. Trump also said the United States has ample munitions and is producing them at unprecedented levels, addressing concerns that months of fighting have depleted U.S. weapons inventories, including Tomahawk cruise missiles, Patriot interceptors and THAAD interceptors. He separately predicted progress toward ending Russia's war in Ukraine, saying the United States was working with Russian and Ukrainian leaders and suggesting an agreement could come sooner than expected, leaving defense investors weighing possible negotiated settlements against the longer-term need to replenish weapons stockpiles.
