Israel intensified its campaign against Iran on Tuesday, as the open conflict entered a fifth day. Israel broadened its assault after initially targeting Iran's key military leaders, nuclear scientists and enrichment sites.
Iran responded with waves of missile and drone strikes, which in some cases succeeded in piercing the Iron Dome defense apparatus. U.S. defense stocks rose Tuesday as Israel expends U.S. supplied ordnance and U.S. involvement appears more likely.
Israel first launched its large-scale attack on Iran on Thursday. In Israel, at least 24 people have been reported killed and 500 injured since the attacks began. Iran reports at least 224 people have been killed and 1,277 wounded, according to the AP.
China and Thailand have urged their citizens to leave Israel, reports from NBC and BBC say. The U.S. evacuated diplomatic personnel and military dependents from Iraq on Wednesday.
The Israeli military has called for around 330,000 residents in a downtown neighborhood in Iran's capital, Tehran, to evacuate, according to reports. A social media post late Monday from President Donald Trump called for the total evacuation of Tehran. The city has a population of 10 million people, equivalent to the entire population of Israel.
Trump Leaves G7 Summit
Trump late Monday arrived back in Washington, D.C., after leaving the Group of Seven summit in Canada early to focus on the Israel-Iran conflict.
"We're looking at better than a cease-fire," Trump told reporters. "A real end. Not a cease-fire, an end."
Trump repeated prior claims that Iran shouldn't have nuclear weapons, after posting online earlier this week that Iran could have avoided the attack if it agreed to a deal to limit its nuclear developments.
The President online on Monday warned that "everyone should immediately evacuate Tehran," but later clarified that he wants "people to be safe."
Trump reportedly asked the National Security Council to be ready in the Situation Room for when he arrived.
U.S. Sends Ships
Israel took "unilateral" action during the first attack, Secretary of State Marco Rubio said in a Friday statement. Trump told Fox News on Thursday that he was aware that Israel was planning to attack. The Trump administration is sending military assets to the region to support the U.S. ally, and ostensibly to defend critical shipping lanes in the region.
The aircraft carrier USS Nimitz moved from the South China Sea to Indonesia's Strait of Malacca over the weekend, heading for the Middle East to join the carrier USS Carl Vinson and its strike group, Military.com reported. The Navy is moving another destroyer, the USS Thomas Hudner, to join the USS Arleigh Burke and the USS The Sullivan in the region. All three of those ships have ballistic missile defense capabilities.
Officials noted that the Burke and Sullivan had launched missile interceptors in recent days, and other destroyers are likely to join in the near future.
A wave of U.S. tanker aircraft also took off Sunday to move closer to the region.
"Over the weekend, I directed the deployment of additional capabilities to the United States Central Command Area of Responsibility," Secretary of Defense Pete Hegseth wrote online Monday. "Protecting U.S. forces is our top priority and these deployments are intended to enhance our defensive posture in the region.
Sen. Tim Kaine (D-Va.) introduced legislation to prevent President Trump from taking military action against Iran without explicit congressional approval, Military.com reported.
Nuclear Concerns
Israel first launched the attacks with an aim to dismantle Iran's nuclear program. Reports on the status of Iran's nuclear program have been contradictory. U.S. intelligence found that "Iran not actively pursuing a nuclear weapon, it was also up to three years away from being able to produce and deliver one," according to CNN.
A report last week from the International Atomic Energy Agency saw Iran with enough "uranium enriched at levels just below weapons-grade to potentially make nine nuclear bombs, which it termed 'a matter of serious concern,'" CNN reported.
Israel's military claimed intelligence showed Iran had a short timeline to nuclear capability. "If not stopped, Iran could produce a nuclear weapon in a very short time," the BBC quoted Prime Minister Benjamin Netanyahu saying. "It could be a year. It could be within a few months."
Iran agreed to a nuclear treaty in 2015 to limit nuclear activities in exchange for reduced sanctions under the Joint Comprehensive Plan of Action. President Trump withdrew the U.S. from that agreement in 2018. Trump has been unable to secure any sort of replacement deal to limit Iran's nuclear programs, but — until Israel's attack — was scheduled to hold talks over the past weekend.
Defense Stocks Rise
Defense stocks edged higher while the broader market sagged Tuesday.
Kratos Defense, which makes drones and missile systems, rose nearly 5% Tuesday.
L3Harris rose 1.3%, to climb above a 249.13 handle buy point. Shares attempted a breakout Thursday. L3Harris manufacturers various drones, unmanned systems, military equipment and components.
Lockheed Martin and Northrop Grumman advanced 2.6% and 1.3%, respectively. Lockheed is the primary contractor for the F-35. Northrop Grumman contributes to F-35 manufacturing. The company also makes a number of drones, surveillance aircraft and bombers.
RTX rose 1.4% to advance further above a buy zone, with shares trading at record highs. RTX makes engines for the F-15 and F-16, as well as a range of defense systems. The company is a partner with Rafael Advanced Defense Systems on the Iron Dome Weapon System.
Israel-based Elbit Systems is also above a buy zone and trading around all-time highs with a 1.5% gain Tuesday.
Missile and drone maker AeroVironment gained 1.1%.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
