Sectors Affected by
Global Conflicts
Educational research on how geopolitical tensions historically impact different market sectors. Understanding these dynamics helps investors make informed decisions during volatile periods.
6
Sector Categories
18+
Companies Analyzed
$2T+
Combined Market Cap
2026
Updated Analysis
Understanding Geopolitical Impact
How global tensions historically affect market sectors
Defense Spending
Global defense budgets have historically increased during periods of heightened tensions. NATO members are now targeting 2%+ of GDP on defense, up from previous commitments.
Energy Security
Energy independence has become a national security priority. Supply disruptions from conflict regions typically drive commodity price volatility and domestic production.
Cyber Threats
State-sponsored cyberattacks increase dramatically during conflicts. Critical infrastructure protection and cyber defense have become essential government priorities.
Defense & Aerospace
Companies historically benefiting from increased military spending
Lockheed Martin
LMTAerospace & Defense • $135B
World's largest defense contractor. Produces F-35 fighter jets, missile defense systems, and military satellites.
Why It Matters
- Largest U.S. defense contractor by revenue
- F-35 program worth $1.7 trillion over lifetime
- Hypersonic weapons development leader
- Strong backlog of $156B in orders
revenue
$67B
backlog
$156B
dividend Yield
2.6%
Northrop Grumman
NOCAerospace & Defense • $75B
Specializes in stealth technology, nuclear systems, and unmanned systems including the B-21 bomber.
Why It Matters
- B-21 Raider stealth bomber program
- Nuclear modernization contracts
- Space systems and satellites
- Autonomous systems leadership
revenue
$39B
backlog
$84B
dividend Yield
1.5%
RTX Corporation
RTXAerospace & Defense • $155B
Formed from Raytheon-UTC merger. Produces missiles, radar systems, jet engines, and avionics.
Why It Matters
- Patriot missile system manufacturer
- Pratt & Whitney jet engines
- Air defense systems demand surge
- NATO expansion driving orders
revenue
$69B
backlog
$196B
dividend Yield
2.3%
General Dynamics
GDAerospace & Defense • $85B
Produces submarines, tanks, combat vehicles, and IT services for defense and intelligence.
Why It Matters
- Virginia-class submarine program
- Abrams tank manufacturer
- Gulfstream business jets
- Strong government IT contracts
revenue
$42B
backlog
$91B
dividend Yield
2.0%
L3Harris Technologies
LHXDefense Electronics • $45B
Defense electronics and communications systems, including secure radios and ISR platforms.
Why It Matters
- Military communications leader
- Electronic warfare systems
- Space and airborne systems
- Night vision technology
revenue
$19B
backlog
$23B
dividend Yield
2.1%
Energy & Oil
Companies historically impacted by supply disruptions and energy security
ExxonMobil
XOMOil & Gas Major • $450B
World's largest publicly traded oil company. Integrated operations across upstream, downstream, and chemicals.
Why It Matters
- Largest U.S. oil producer
- Strong balance sheet for volatility
- Guyana oil discoveries transformational
- LNG export capacity expansion
production
3.8M boe/day
dividend Yield
3.3%
pe Ratio
13.5x
Chevron
CVXOil & Gas Major • $285B
Second-largest U.S. oil company with major operations in Permian Basin and global LNG.
Why It Matters
- Permian Basin cost leader
- Australia LNG operations
- Strong free cash flow generation
- Disciplined capital allocation
production
3.1M boe/day
dividend Yield
4.0%
pe Ratio
11.2x
Halliburton
HALOilfield Services • $28B
Leading oilfield services company. Benefits from increased drilling activity and well completions.
Why It Matters
- Largest North America completions company
- International expansion accelerating
- Drilling activity recovery beneficiary
- Technology differentiation
revenue
$23B
margin
17%
dividend Yield
1.8%
Schlumberger
SLBOilfield Services • $65B
World's largest oilfield services company. Global operations and technology leadership.
Why It Matters
- Global market leader
- Digital transformation initiatives
- Middle East expansion
- Offshore recovery beneficiary
revenue
$34B
margin
20%
dividend Yield
2.2%
Cybersecurity & Defense Tech
Companies historically benefiting from increased cyber threats
CrowdStrike
CRWDEndpoint Security
Cloud-native endpoint protection platform. AI-powered threat detection and response.
Why It Matters
- State-sponsored attacks increasing
- Critical infrastructure protection
- Government contracts growing
arr
$3.6B
growth
+33%
nrr
119%
Palo Alto Networks
PANWNetwork Security
Comprehensive cybersecurity platform covering network, cloud, and endpoint security.
Why It Matters
- Zero Trust architecture leader
- Government security mandates
- Cloud security expansion
revenue
$8B
growth
+26%
customers
80,000+
Palantir
PLTRDefense Intelligence
Data analytics platform for defense and intelligence agencies. AI/ML capabilities.
Why It Matters
- Core government intelligence contracts
- Military AI applications
- Ukraine war data support
revenue
$2.4B
growth
+26%
govRevenue
55%
Commodities & Agriculture
Companies historically affected by supply chain and food security concerns
Mosaic Company
MOSFertilizers
World's largest combined producer of potash and phosphate fertilizers.
Why It Matters
- Food security concerns rising
- Supply chain disruptions
- Belarus/Russia sanctions impact
production
Potash: 9M tons
margin
25%
dividendYield
1.2%
Archer-Daniels-Midland
ADMAgricultural Commodities
Global agricultural processing and commodities trading company.
Why It Matters
- Grain trading volatility beneficiary
- Food supply chain critical
- Biofuel demand growth
revenue
$94B
margin
4%
dividendYield
2.8%
Cameco
CCJUranium
World's largest publicly traded uranium producer. Nuclear energy critical for baseload power.
Why It Matters
- Nuclear renaissance for energy security
- Russia uranium dependence concerns
- Supply deficit growing
production
18M lbs
reserves
452M lbs
costPosition
Low
Shipbuilding & Naval
Companies historically benefiting from naval fleet expansion
Huntington Ingalls
HIIShipbuilding • $12B
America's largest military shipbuilder. Sole builder of nuclear aircraft carriers.
Why It Matters
- Aircraft carrier monopoly
- Nuclear submarine production
- Navy fleet expansion plans
- Long-term contracts secured
revenue
$12B
backlog
$48B
dividend Yield
2.0%
BWX Technologies
BWXTNuclear Components • $10B
Nuclear components for defense and commercial applications. Navy reactor supplier.
Why It Matters
- Sole supplier of Navy nuclear reactors
- Nuclear modernization critical
- AUKUS submarine deal beneficiary
- Medical isotopes growth
revenue
$2.7B
backlog
$5.5B
margin
19%
Important Risk Factors
Considerations when researching these sectors
Geopolitical Uncertainty
Conflict situations can de-escalate quickly, potentially reversing sector gains.
Valuation Concerns
Defense and energy stocks may already price in geopolitical premiums during conflicts.
Political Risk
Government budget priorities and policy changes can significantly impact defense contractors.
Commodity Volatility
Energy and commodity prices can swing dramatically based on news cycles.
Execution Risk
Large defense contracts often face delays, cost overruns, and technical challenges.
ESG Considerations
Defense and energy sectors face increasing ESG scrutiny from institutional investors.