As the conflict between Israel and Iran escalates, defense stocks are seeing a surge in activity, and some U.S. politicians appear to have profited from the turmoil.
Just days before the renewed conflict erupted in June 2025, two lawmakers made well-timed purchases of shares in defense contractor L3Harris Technologies (NYSE: LHX).
Specifically, a House Armed Services Committee member, Representative Gilbert Cisneros, bought between $1,001 and $15,000 worth of LHX stock on May 30, according to a disclosure filed on June 6.
Even earlier, on May 13, Oklahoma Senator Markwayne Mullin, a frequent trader who also sits on the Senate Armed Services Committee, made a significantly larger investment, buying between $15,001 and $50,000 worth of LHX shares.
Mullin disclosed his Congress trade on June 11. As previously reported by Finbold, the politician has drawn scrutiny for high-profile suspicious stock trades, including in companies he helps oversee.
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Politicians profit from LHX surge
These transactions will likely raise eyebrows, as LHX stock has rallied sharply since the lawmakers’ purchases.
A 17% surge followed Mullin’s trade, while Cisneros’ investment gained 4.9%. The timing raises suspicions of the potential use of non-public information, especially since both lawmakers sit on committees that directly oversee sectors in which L3Harris operates.
At the close of the last trading session, LHX was trading at $256.99, up more than 2% on the day and 17% over the past month.
The rally comes amid the intensifying conflict where, on June 12, Israel launched a surprise attack on Iran’s nuclear facilities, including the Natanz site, reportedly killing senior IRGC scientists and commanders. In retaliation, Iran unleashed a wave of drones and missiles on June 13.
While broader U.S. markets closed the week in the red as investor nerves frayed, defense stocks like L3Harris bucked the trend. Shares rose on expectations of increased military spending and growing global demand for arms.
Meanwhile, fears of a broader war are resurfacing. In light of the rising geopolitical risks, Finbold reported that the artificial intelligence tool ChatGPT identified a portfolio designed to navigate the threat of global conflict.
Featured image via Shutterstock
