Posted on 09/22/2026 9:18:59 AM PDT by SeekAndFind
Aerospace and defense stocks fell broadly Tuesday as 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 (VVX) fell about 3.8%, Kratos Defense & Security Solutions (KTOS) dropped 3.7% and Karman Holdings (KRMN) declined 3.5%. BAE Systems (BAESF)(BAESY) was down 2.9%, Northrop Grumman (NOC) fell 2.8% and Lockheed Martin (LMT) lost 2.7%. General Dynamics (GD), Huntington Ingalls (HII), L3Harris Technologies (LHX) and RTX (RTX) also traded lower.
The declines came as Trump told the UN General Assembly that he expects the United States eventually to reach an agreement with Iran. He said he believes Tehran will make a deal after the U.S. midterm elections on Nov. 3.
Adding to hopes for a diplomatic breakthrough, Iran offered to reopen the Strait of Hormuz within seven days if Washington reduces military pressure and ends its blockade of Iranian ports, Reuters reported, citing a senior Iranian official. The official also said Iran’s delegation at the UN General Assembly has been authorized to restart diplomatic negotiations with the United States.
Trump's remarks nevertheless offered no assurance that the fighting will end soon. He presented Iran with a choice between reaching an agreement that would allow the country to rebuild and facing renewed U.S. attacks.
The comments underscored the uncertainty surrounding the conflict. Investors have been watching diplomatic developments for indications of how long the war may continue and what that could mean for demand for missiles, interceptors and other military equipment.
Trump also addressed concerns that months of fighting have depleted U.S. weapons inventories. He said the United States has ample munitions and is producing them at unprecedented levels.
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Trump also used his UN address to predict progress toward ending Russia's war in Ukraine. He said the United States was working with Russian and Ukrainian leaders and suggested an agreement could come sooner than expected.
The combination of possible diplomatic progress in Iran and Ukraine offered investors another reason to reassess defense shares that have been sensitive to geopolitical developments.
Still, Trump's comments on Iran were far from a declaration of peace. He warned the United States could launch significantly more destructive attacks if negotiations fail. The administration also called for continued economic pressure on Tehran even as U.S. officials indicated they remained open to diplomacy.
“Iran offered to reopen the Strait of Hormuz within seven days if Washington reduces military pressure and ends its blockade of Iranian ports”
Why should we, with such great weapons and great military leadership, care about any such Iranian offer?
The Iranians are as good at kicking a can down the road as a Republican member of Congress.
Yeah, that makes total sense... let’s see how the 97th attempt at a peace plan goes; I’m sure it will be completely different than the first 96.
Who needs a peace treaty? I thought we won the war in the first two days and about 25 times additional since then.
RE: Why should we, with such great weapons and great military leadership, care about any such Iranian offer?
We really shouldn’t, but there’s the Midterms coming up and many voters (I don’t know about the majority ), are angry about the price of gas and other items that flow on from the high price of gasoline.
I’ve always said — America can win ANY war with any country except the war WITHIN itself. Iran knows this axiom.
Just another round of failure. Let me know when something important happens.
RE: I thought we won the war in the first two days
Let’s define “winning the war” first, before we even use the term.
The Iranians forget that the President will have free reign to do anything to Iran between now and January of next year.
We won the war. Now Trump is dealing with the question of whether or not they should be “annihilated.”
This idiocy with Iran and the events that have unfolded since early February are a perfect case in point.
The Commander-In-Chief and the Secretary of War have been the ones that have used those terms and made those repeated claims dozens of times since March.
Maybe they should be the ones to define it more clearly.
If the current situation is “winning”, I would hate to see what “stalemate” or “losing” looks like.
Keep wringing their neck.
Sadly Trump fails to realize that if the mullahs however battered remain in power with a “deal”, then they will have won and America however you analyze it has lost. The regime change will occur in the United States.
RE: The regime change will occur in the United States.
Our Constitution provides for regime change every so often. Nothing new here.
Trump has described “winning the war” in at least two different ways. He has said that Iran must surrender unconditionally. He has so said they must give up all of their uranium.
It is very unlikely that either will happen. So while I believe Trump is trying to do the right thing here, he has painted himself into a corner.
Let me guess...
Another 50 years of the pathologically violent IRGC dictatorship?
RE: Maybe they should be the ones to define it more clearly.
OK, here’s mine — REGIME CHANGE IN IRAN.
But that was not the goal. Nobody, not Trump, Rubio or Hegseth ever used that term.
So, My understanding is they ( the administration ), define “winning” as:
1. Iran does not develop any nukes and surrenders its stockpile
2. Iran opens the Strait of Hormuz.
Those are the two conditions they ( the administration ) sees as “winning” ( note the quotes ).
Only language lunatic religious fanatics understand is total azz whooping.
Stupid stock traders. The US will still need to spend billions on new missiles, smart bombs, warheads, and drones.
And there’s a world wide demand for 155 mm shells.
I’m not familiar with the first two companies listed, but the rest of them should have good sales opportunities re-stocking and developing products based on lessons learned in Ukraine and the Persian Gulf wars.
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