How Arms Firms are Profiting from the Ongoing Conflicts

If there is someone more sinister than the parties involved in a war, it is the one supplying arms to either of the two because that party benefits the most in the loss of the first two. These mega enterprises have cashed in big bucks from the top conflicts and wars that have surfaced on the global geopolitics scale from the US invasion of Iraq in 2003 to the ongoing Israel-Hamas conflict.

Lockheed Martin, Northrop Gruman and Huntington Ingalls are some of the defense manufacturers in the US that have observed an 8% rise in stock value since the Israel-Hamas conflict has surfaced.

The rise in the value of these firms has coerced Wall Street to shift its focus on the defense industry.

Why has the value surged so drastically? This is because of Israel’s renewed interest in purchasing more weapons from the US . The country already is getting $3.8 billion worth of military aid from the US. That is likely to increase following the Hamas assault.

Before this, the Russia-Ukraine conflict saw European Defense stocks reaching new heights as the governments flocked towards buying new weapons stock to offer to Ukraine.

There have been multiple theories that wars like these are encouraged deliberately for businesses like these to make millions.

The energy sector has witnessed a similar but more modest rise in its value. West Texas Intermediate crude saw a 4.3% rise while in the UK, Shell Plc and BP Plc saw more than 2% rise in its value.

The effect has been international, primarily in the Western Market, fuelled majorly by the conflicts going between Israel-Hamas and Russia-Ukraine.

Speaking of Russia-Ukraine , the battle that seems to have descended into a sudden shadow of the more recent Israel-Hamas conflict, the war itself has caused defense spending to soar in Europe and the US.(topping $842 billion).

It is worth noting that US has poured up to $37.6 billion war aid to Ukraine , an amount the country has never before received in its history before.

Alongside the already established arms and ammunition giants selling their weaponry, new entrepreneurs have also entered the market testing with their own set of products.

Blake Resnick, an only 23 years old US entrepreneur made his $100 million fortune by firstly donating and then selling his set of drones to Ukraine. The battlefield in Ukraine has become a potential testing ground for new electronic warfare technology.

The future of the defense and arms industry seem to look bright as countries all over the world have decided to ramp up their defense budgets.

In the East, the West and the its allies are preparing an impending conflict bigger than the ones currently happening: China’s invasion of Taiwan.

Both South Korea and Japan have increased their defense budget by considerable percentages given the ongoing geopolitical tensions in the region. This has opened a gateway for arms manufacturers to sell and rake revenues.

As the world further drifts into an uncertainty of what will happen next, the defense firms across the globe revel in huge profits.