Shares of Lockheed Martin (LMT) soared 5.07% in pre-market trading on Friday, as escalating tensions between Israel and Iran sparked a rally in defense stocks. The surge comes in response to Israel's surprise attack on Iran's nuclear program and military leadership, significantly heightening geopolitical risks in the Middle East.

The conflict has created a ripple effect across global markets, with investors flocking to defense contractors amid expectations of increased military spending. Lockheed Martin, as a leading aerospace and defense company, is positioned to benefit from potential increased demand for its products and services, including its F-35 fighter jets which were reportedly used in Israel's previous operation against Iran in October 2024.

Other major defense stocks also saw significant gains in pre-market trading, with RTX Corporation up 6.2%, Northrop Grumman rising 3.6%, and L3Harris Technologies climbing 4.3%. This sector-wide rally underscores investors' belief that the escalating conflict could lead to higher defense budgets and increased orders for military equipment.

The geopolitical situation remains fluid, with Iran expected to retaliate. As tensions continue to mount, defense stocks like Lockheed Martin are likely to remain in focus, with investors closely monitoring developments in the Middle East and their potential impact on global defense spending trends.