How Trump’s Strait of Hormuz Rhetoric Could Shake Oil Majors and Defense Stocks

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“Trump brilliantly calls Iran’s bluff — with his own Strait of Hormuz blockade:”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Trump’s talk of a Strait of Hormuz “blockade” raises perceived geopolitical and supply risks for global oil, which could support higher crude prices and potentially benefit integrated oil majors like BP plc., Chevron and Exxon Mobil Corp. through improved margins and revenue expectations. At the same time, the Energy Select Sector SPDR Fund, which is heavily weighted toward large energy names, could see increased volatility and short-term gains as investors reposition around possible supply disruptions.

Heightened military tensions with Iran tend to boost demand expectations for defense spending, which can support shares of Lockheed Martin and RTX Corporation as markets price in more orders for missiles, aircraft and naval systems. As a result, defense-focused ETFs such as the iShares U.S. Aerospace & Defense ETF may also attract inflows from investors seeking exposure to firms that could benefit from a sustained rise in geopolitical risk.

However, if rhetoric escalates into a broader confrontation that threatens global trade or triggers risk-off sentiment, equity markets overall could sell off, partially offsetting gains in oil and defense names. In that scenario, even energy and defense stocks might experience near-term drawdowns as investors reduce exposure to cyclical and high-beta assets before selectively rotating back into perceived beneficiaries of prolonged instability.

Here are some of the stocks that might be affected:
BP plc. ((BP)),
Chevron ((CVX)),
Exxon Mobil Corp. ((XOM)),
Lockheed Martin ((LMT)),
Rtx Corporation ((RTX)),
Energy Select Sector SPDR Fund ((XLE)),
iShares U.S. Aerospace & Defense ETF ((ITA)).