The aerospace and defense sector fell after reports that Iran offered to reopen the Strait of Hormuz within seven days if the U.S. begins easing military pressure. This news eased concerns over disruptions to global energy shipments through the strategic chokepoint, leading to a decline in oil prices.
As geopolitical risks softened, investors reduced exposure to defense stocks which had benefited from sustained military and munitions demand expectations. Lockheed Martin and RTX each dropped about 3%, while Boeing declined roughly 1%.
The iShares U.S. Aerospace & Defense ETF fell nearly 1%, while the broader SPDR S&P 500 ETF remained virtually unchanged, indicating that selling was focused in the defense sector. This latest move added to recent losses, with RTX down about 10% and Lockheed Martin about 7% over the past month.
Meanwhile, WTI crude oil traded around $91.64 a barrel, down 0.79%, reflecting market optimism about easing tensions and improved oil flow. Overall, these developments show how swiftly changes in Middle East geopolitics can impact energy prices and investor sentiment toward aerospace and defense companies.
