Top Stocks to Watch During the Iran-Israel Conflict in 2025
Discover which stocks and sectors tend to rise during Middle East conflicts. Learn how defense, oil, and gold stocks react and what to watch in 2025.
The recent conflict between Iran and Israel has caused major changes in the global stock market. When wars break out, certain stocks and sectors often see big price moves. Understanding these patterns can help investors protect their money and even find new opportunities.
Why Do Wars Affect Stocks?
When a war starts, people and governments worry about safety and resources. This leads to more spending on defense and can disrupt the supply of important goods like oil. As a result, some companies benefit while others may struggle.
Defense Stocks:
Defense companies make things like airplanes, weapons, and military equipment. When countries are at war, they often buy more from these companies. This can cause the stock prices of defense companies to rise. For example, during past Middle East conflicts, companies like Raytheon (RTX), Lockheed Martin (LMT), and Northrop Grumman (NOC) saw their stock prices go up.
Oil Stocks:
A lot of the world’s oil comes from the Middle East. If war threatens oil supplies, prices can jump. This helps oil companies make more money. In past conflicts, companies like ExxonMobil and HF Sinclair saw their stocks rise as oil prices increased.
Gold Stocks:
Gold is known as a “safe haven” asset. This means people buy gold when they are worried about the future. When wars start, gold prices often go up. Companies that mine or sell gold, like Skeena Resources (SKE) and Eldorado Gold (EGO), can benefit.
Examples from Past Conflicts
Looking at past wars in the Middle East, the same pattern appears. Before and during the 2003 Gulf War, defense and oil stocks rose sharply. Gold prices also increased, sometimes by hundreds of percent. This shows that these sectors often react in similar ways when new conflicts begin.
What to Watch Now
With the current Iran-Israel conflict, investors are again looking at defense, oil, and gold stocks. Some stocks that have shown strong moves include:
Defense: Leonardo DRS (DRS), Raytheon (RTX), Lockheed Martin (LMT), Mercury Systems (MRCY)
Oil: ExxonMobil, HF Sinclair (DINO), Imperial Oil
Gold: Skeena Resources (SKE), Eldorado Gold (EGO), Gold Royalty (GROY)
It is important to remember that stock prices can move quickly. Sometimes it is better to wait for a “pullback,” which means waiting for the price to drop a little before buying.
Understanding Market Patterns
Investors who learn to spot these patterns can make better decisions. Watching how sectors like defense, oil, and gold react to world events can help protect investments and find new chances to grow wealth.
For more insights on market patterns and investing education, visit Felix Prehn Goat Academy.