Key Points
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The Iran war has fueled widespread uncertainty in trade and oil markets.
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Defense contracts and cybersecurity companies supply critical services to the U.S. military during times of regional conflict.
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AI infrastructure providers also play an important, albeit subtle, role for the Pentagon in times of war.
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On Feb. 28, the U.S. and Israel launched a military campaign against Iran, dubbed Operation Epic Fury. This has blocked key maritime routes like the Strait of Hormuz, affecting approximately 20% of the global oil trade and driving crude oil prices higher, raising concerns about inflation and economic instability.
Since the onset of the conflict, the stock prices of key companies in oil and defense have seen gains. Palantir Technologies, linked to U.S. military operations, reported a revenue of $1.9 billion in 2025 from government contracts, up 55% year-over-year. Its shares have increased by 12% since the conflict began, and analysts predict a potential 40% rise should the war continue.
Nvidia, a major player in AI hardware, faces supply chain risks due to the conflict affecting international trade routes, while also positioning itself for long-term opportunities in defense AI applications. CrowdStrike, specializing in cybersecurity, has reported increased threats to American industries from Iranian-backed cyberattacks.
