Top Stocks to Purchase as the US-Iran War Intensifies

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TLDR

  • The Iran-US conflict intensifies following the reported death of Supreme Leader Khamenei in US-Israeli strikes, causing markets to enter rotation mode.
  • Crude oil prices are approaching seven-month highs, with analysts predicting potential increases of $10 or more.
  • Energy stocks such as BP and Chord Energy provide direct exposure to rising oil prices and offer strong dividends.
  • Defense contractors Lockheed Martin and Northrop Grumman are experiencing surging demand for missile defense and stealth programs.
  • Eos Energy represents a high-risk, long-term investment in energy security and grid resilience, driven by war-related policy shifts.

The reported death of Iranian Supreme Leader Ayatollah Ali Khamenei after US-Israeli strikes has shaken global markets. Investors are now quickly repositioning their portfolios towards sectors that historically perform well during wartime.

Crude oil is already trading near seven-month highs. Defense budgets are expected to grow, and energy security has once again become a top policy priority.

Here is an overview of five stocks that analysts are closely monitoring at present.

Energy Stocks: Benefiting from the Oil Price Increase

BP (BP)

BP is a UK-based energy company with operations encompassing oil, gas, refining, and renewables. Its global presence enables it to remain resilient when crude prices rise.

BP Stock Card

With Brent crude near seven-month highs, BP’s trading desk and refining margins are anticipated to widen. The stock yields over 5% and trades at a forward P/E below 9x.

BP completed $2.5 billion in buybacks in Q4 and has a progressive dividend policy with a 4% annual growth guidance. Analysts at Fidelity emphasize its income appeal in a war-premium environment.

Chord Energy (CHRD)

Chord Energy operates in the Williston Basin, concentrating on the Middle Bakken and Three Forks formations. It produces approximately  232,737 barrels of oil equivalent per day.

CHRD Stock Card

The company sells crude, NGLs, and gas through pipelines and rail, providing it with direct exposure to WTI price rallies. It returned $1.2 billion to shareholders in 2025 and trades at a forward P/E of around 6x.

Chord yields approximately 4.9% to 5% and has a dividend growth rate of over 20% annually. Analysts at Koyfin and Simply Wall St. rate it as a high-conviction buy for cyclical upside.

Eos Energy Enterprises (EOSE)

manufactures grid-scale batteries in the US. Despite a 700% year-over-year revenue surge and record quarterly sales, its shares dropped significantly after Q4 results.

The company ended 2025 with approximately 2 GWh of annualized production capacity and over $240 million in bookings. It holds more than $600 million in cash.

Eos is not a defensive war stock; it is a high-risk, long-term wager on energy security policy accelerating if governments prioritize grid resilience in response to conflict.

Defense Stocks: Missiles, Bombers, and Growing Backlogs

Lockheed Martin (LMT)

is the world’s largest pure-play defense contractor. It recently secured a $9.8 billion contract for 1,970 Patriot PAC-3 Missile Segment Enhancement interceptors, the largest in its Missiles and Fire Control history.

Iran’s ballistic missile advancements have driven demand for systems like Patriot and THAAD, directly contributing to Lockheed’s order book. J.P. Morgan maintains an overweight rating with price targets ranging from $200 to $500.

The stock offers a dividend yield of around 1.5%. Its $194 billion backlog includes F-35 sustainment and Patriot systems currently in high demand.

Northrop Grumman (NOC)

Northrop Grumman leads in the B-21 Raider stealth bomber and the Sentinel intercontinental ballistic missile program. Both align with Pentagon priorities as Iran-related threats increase.

Morgan Stanley rates it as overweight with a $408 price target, and its shares recently traded around $347. The stock has risen over 33% in the past year and offers a 1.5% dividend yield.

Major 2026 contract awards are expected across B-21, F/A-XX, and Golden Dome projects. Northrop has outperformed the S&P 500 over the past 12 months.