US weapons manufacturers' stock price soars as Trump pulls out of Iran deal

9 May, 2018 14:56 / Updated 7 years ago

While President Donald Trump’s decision to pull the US out of the Iran nuclear deal has been negatively criticized by most of the international community it has brought good news for some. Weapons manufacturers.

The stock price of all of the top US weapons manufacturers shot up just as Trump announced he’s pulling his country out of the pact which lifted sanctions on Iran in exchange for Tehran limiting its nuclear program.

READ MORE: Trump lacks ‘mental capacities,’ Iran says after US pulls out of nuclear deal

Northrop Grumman’s stock price took the largest leap and the aerospace and defense technology company has maintained those gains, rising more than 12 points (3.8 percent) since Trump’s announcement.

Lockheed Martin is up 6.4 points (2 percent) while Raytheon’s price rose 5.3 points (2.55 percent). Boeing also gained more than three points, it was unable to maintain those advances however it is still up two points on its price before Trump said the US was exiting the 2015 deal.

The uptick wasn’t just limited to weapons manufacturers as oil rose more than three percent to hit its highest level since 2014.

The latest price surges are a continuation in rising share prices for weapons manufacturers since Trump entered office promising “historic increases” in military spending. Since January 1 Northrop Grumman, Raytheon and Boeing are all up more than 20 points.

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Those gains have been fuelled by large surges following several of Trump’s actions including his decision to attack Syrian government targets in April and his appointment of John Bolton as his national security adviser in March. Following the Syria strike Boeing, Lockheed Martin, Northrop Grumman and aerospace firm General Dynamics gained nearly $5 billion in market value despite the wider market slumping.

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