Al Root
The strategically critical Strait of Hormuz is effectively closed because of the risk aversion among shippers, Iranian threats, and now dangerous sea mines.
The U.S. military has begun addressing the problem, creating another opportunity for makers of defense technology, including Lockheed Martin, Huntington-Ingalls Industries, Textron, and RTX.
"If Iran has put out any mines in the Hormuz Strait...we want them removed, IMMEDIATLY," said President Trump in a Tuesday post on Truth Social, adding that if the mines are not removed, "the Military consequences to Iran will be at a level never seen before."
The president added that U.S. military technology is capable of addressing the threat.
The technology starts with ship and mine identification, using an array of aerial and space-based reconnaissance technology provided by a host of companies, including Boeing, Lockheed Martin, Northrop Grumman, and SpaceX.
Tracking mine-laying ships isn't easy, however. Iranian mine-laying ships can be small, less than 50 feet long, and look like fishing vessels. Those vessels can be neutralized with the missile technology already being deployed in the Iran conflict.
Many companies are involved in missile production, which Trump has said he plans to quadruple, including RTX, L3Harris Technologies, Lockheed Martin, Boeing, and others.
Sweeping out mines already laid is another phase of the problem.
Finding the mines is job one. The U.S. military may have deployed the Orca sea drone made by Boeing and Huntington Ingalls Industries. About the size of a train car, an Orca can hunt autonomously for months.
The Pentagon didn't immediately respond to a request for comment about the Orca. Anduril's sea drone, Ghost Shark, is a competing program.
There are several mines to look for. The most basic is essentially a bomb tethered to the sea floor that relies on contact with a ship. More sophisticated mines can be triggered using sound or pressure sensors. Iran also possesses mobile mines that can be sent to the sea floor, waiting for deployment.
Neutralizing that threat isn't easy. Kingfish and Lionfish drones, made by Huntington Ingalls, can scan the seafloor for mines. RTX makes the Barracuda underwater kamikaze drone, a four-foot-long, semi-autonomous drone used for surface and near-surface mines.
Textron also makes CUSV robotic boats that can deploy mine-sweeping technologies. Textron's tech can also trick mine sensors into thinking a large boat is passing, triggering a relatively safe detonation.
Iran, of course, can threaten ships with missiles or its Shahed drones. Those are neutralized by an interceptor missile. Iran's drone launches are down more than 80% since the start of the conflict, according to the Defense Department, reflecting the effectiveness of U.S. air defenses and strikes.
Strikes are delivered by a combination of manned fighter jets and bombers from Boeing, Lockheed, and Northrop, all refueled mid-air by a fleet of hundreds of Boeing-made airborne tankers.
The entire suite of technologies is manufactured by a host of companies of all sizes. The conflict hasn't been a boon to the stocks. Since fighting began in Iran, the iShares Aerospace & Defense ETF has fallen about 4%, though early trading Wednesday. That still leaves the ETF up about 62% over the past 12 months.
Higher military spending around the globe, rising geopolitical tensions, a new focus on lower-cost, AI-enabled autonomous battle technologies, and a need to grow missile and munitions inventories have all been a boon to the sector.
Those trends should remain in place once the fighting in Iran is over.
Wednesday morning, Lockheed, Huntington, Textron, and RTX shares were down 0.7%, 0.6%, 1.2%, 0.7%, respectively. The S&P 500 was up 0.1%, and the Dow Jones Industrial Average was down 0.4%.
Declines left the four stocks up an average of 59% over the past 12 months. The group might not always react to each problem the Iran conflict reveals, but investors are convinced the sector's future is bright.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 11, 2026 10:35 ET (14:35 GMT)
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