Lockheed Martin Presents Germany's First F-35A as 35-Jet Program Advances

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.

Aerospace and defense shares fell Tuesday morning after a Reuters report that Iran has offered to reopen the Strait of Hormuz within seven days if the U.S. takes initial steps toward easing military pressure. Lockheed Martin dropped 3% to $521.05 and RTX fell 3% to $189.40, while Boeing slipped 1% to $198.61, its smaller decline reflecting a revenue mix weighted toward commercial aircraft rather than munitions. The iShares U.S. Aerospace & Defense ETF fell 1% to $213.40 while the SPDR S&P 500 ETF Trust held roughly flat at $773.53, confirming the selling was concentrated in defense primes rather than the broader market. WTI crude oil traded at $91.64 per barrel, down 0.79% over the past 24 hours and lower for a fourth session, as the diplomatic signal compressed the geopolitical risk premium underpinning expectations for sustained munitions demand. The move extends an existing de-rating: RTX has shed 10% and Lockheed Martin 7% over the past month, making the Hormuz headline an accelerant rather than the ignition for the decline.