Defence and weapons-related stocks are experiencing a broad surge in 2025, as military rearmament, international conflict, and institutional capital converge to reshape the sector. From traditional defence giants to next-generation defence tech firms, interest in this area has gone global.
Global Conflict Drives Investor Moves
In early June, Israeli forces launched a major strike on Iranian nuclear facilities. In response, defence equities surged, especially among U.S. defence contractors like RTX (formerly Raytheon), Lockheed Martin, and L3Harris Technologies. Premarket gains ranged from 4% to 5%, reflecting traders’ quick pivot toward companies likely to benefit from increased conflict.
The situation escalated further in late June when the United States launched additional airstrikes targeting Iranian military sites, increasing geopolitical tensions across the Middle East. Following the strikes, oil prices briefly surged amid heightened concerns over supply disruptions, and defence stocks experienced renewed buying activity amid worries about broader regional instability. According to reports from CNN and Bloomberg, the Strait of Hormuz remains a key risk focus for global markets.
In India, local defence leaders Ideaforge and Hindustan Aeronautics rose by up to 8%. Investors are responding not only to headlines, but to a changing long-term landscape in which defence spending is structurally higher.
European Rearmament: A Structural Shift
Europe is one of the most active regions in the global defence rally. Germany’s Rheinmetall has gained over 190% so far in 2025. The company, known for producing tanks and ammunition, has become one of the top-performing stocks in Europe.
The European Commission has proposed an €800 billion rearmament initiative across member states. This has generated new demand for equipment, training systems, and integrated technologies. Stocks like Sweden’s SAAB AB, which has long served NATO-aligned countries, have also gained sharply.
Norway’s DNB Defence Fund Gains Traction
Norwegian investors are participating in the trend through fund exposure. The newly launched DNB European Defence fund has returned over 20% since its April 2025 launch, accumulating more than NOK 1.5 billion in investor capital. The fund is heavily allocated toward European military suppliers and aerospace firms.
Still, local experts caution against assuming the rally will continue unchecked. Norwegian financial commentator Hallgeir Kvadsheim warns that a significant portion of expected growth may already be priced in. “It’s important to understand the risks involved when entering this late in a sector-specific bull run,” he noted.
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Rise of Defence Tech and Dual-Use Innovation
Beyond legacy firms, investors are taking notice of newer defence-tech players. One standout is Voyager Technologies, which went public in May. The company provides AI-powered battlefield logistics systems and military-grade communications platforms. Its IPO surged 82% on the first day of trading, attracting both retail and institutional buyers.
Meanwhile, U.S.-based Oklo, a nuclear startup, announced a deal with the Department of Defense to deploy modular microreactors on U.S. bases—illustrating how defence investment now includes energy security as well as weapons systems.
What to Watch as a CFD Trader
The latest U.S. strikes on Iranian military targets have further increased short-term price sensitivity in defence-related CFDs. For CFD traders, defence-related instruments offer volatility and narrative-driven price action. Tickers such as Rheinmetall, SAAB, RTX, and General Dynamics are seeing increased daily trading volume. However, headline sensitivity is high, and risk management remains essential.
