These Defense Stocks Break Out As Venezuela Amplifies Questions On Iran

• L3Harris and Heico broke out above buy points, while AeroVironment rallied 13% and Kratos jumped 11% as defense stocks advanced broadly across the sector
• Iran's currency collapsed to historic lows against the dollar, sparking protests across 220 locations in 26 of 31 provinces, with at least 20 killed and over 990 arrested
• President Trump warned the U.S. is 'locked and loaded' to intervene if Iran violently suppresses protesters, while also supporting Israeli action against Iranian missile production and nuclear sites

Defense Stocks Surge on Venezuela Operation and Iran Tensions

Key Developments:

Defense stocks rallied Monday following the U.S. weekend capture and extradition of Venezuelan President Nicolas Maduro on drug and weapons charges. President Trump announced the U.S. will "run" Venezuela until a safe transition occurs. The operation has amplified concerns about potential military action against Iran, which is experiencing its second week of anti-government protests amid economic collapse.

Stock Performance:

AeroVironment (AVAV) led gains with a 13% surge, rebounding above its 50-day line. Kratos jumped 11%, while Heico rose over 3%, breaking out above a 338.92 buy point from a flat base. L3Harris gained 2%, breaking above a 308.12 entry point. Israel-based Elbit Systems climbed 4.4%, extending gains from its mid-December breakout.

Major defense contractors also advanced: General Dynamics +3%, Lockheed Martin and Northrop Grumman both +2%, with RTX inching higher.

Market Implications:

Geopolitical tensions are escalating as Israeli officials warned Iran to "pay close attention" to Venezuela developments. Iran has entered its ninth day of protests across 220+ locations in 26 provinces, with at least 20 killed and 990+ arrested. The rial currency has collapsed to historic lows against the dollar.

Trump pledged to support Israeli action against Iran regarding ballistic missiles and nuclear facilities, stating the U.S. is "locked and loaded" if Iran violently suppresses protests. Iran's Supreme Leader Khamenei vowed not to "give in to the enemy," while officials warned U.S. intervention would destabilize the region.

Analysts suggest reduced diplomatic prospects increase conflict likelihood, benefiting defense sector valuations.