Trump Iran military action threat

What happened: President Trump has escalated tensions with Iran, threatening military action if Iran doesn't comply with his demands. He warned Iran to "get moving" or face consequences, stating that "time is of the essence." Trump also said Iran would be bombed "at a much higher level" if they don't agree to a peace deal. As a ceasefire deadline looms, Trump has threatened Iran with overwhelming military force, and reports suggest he will receive a briefing on potential strikes. Trump has also threatened to revoke visas for nearly 4,000 Iranian elites living in the U.S.

Market impact: Defense stocks like Lockheed Martin (LMT) have seen increased interest, with the company ending 2025 on a high note, posting a $194B backlog, $75.05B in annual sales, and $6.9B in free cash flow. Oil prices have also risen due to the increased geopolitical risk, with U.S. West Texas Intermediate crude futures climbing. Energy companies involved in LNG exports, such as Venture Global (VG), have also benefited from the heightened tensions.

What to watch next: On Thursday, Trump is set to receive a briefing on potential strikes in Iran, which could provide more clarity on the U.S.'s military intentions. Additionally, the 60-day legal timer for the war expires on Friday, which could trigger further action or decisions. Lastly, markets will closely monitor any developments around the Strait of Hormuz, as Trump has made its opening a key condition for suspending planned attacks.