President Donald Trump issued a 48-hour ultimatum Sunday. He threatened to destroy Iran’s power plants unless the Strait of Hormuz reopens to all shipping. This move marks a significant escalation in the fourth week of the U.S.-Iran conflict.
Iran’s military pledged to retaliate against U.S. and Israeli infrastructure if Washington follows through. The escalation follows Iranian missile strikes late Saturday near a primary Israeli nuclear research facility.
The strikes hit two communities in southern Israel and injured more than 100 people. Increased prospects of a protracted war are expected to drive demand for military hardware. This development will likely influence aerospace and defense stocks within the XAR ETF.