Defense stocks are surging as the U.S. hints at the possibility of deploying ground troops to Iran, intensifying concerns about a protracted conflict.
As of 9:29 a.m. (South Korean time) hours on Tuesday, LIG Nex1 hit its upper limit, trading at 661,000 KRW (about 446 USD), a 29.86% increase of 152,000 KRW (about 103 USD) from the previous day’s close.
Other defense sector stocks also saw significant gains, with Hanwha Systems up 27.29%, Hanwha Aerospace rising 22.34%, and Hyundai Rotem climbing 15.84%.
On the second day of Operation Grand Fury against Iran, President Donald Trump, in an interview with the New York Post, stated he has no aversion to deploying ground forces.
While suggesting that ground troops may not be necessary, the President kept all options on the table, adding that they could be deployed if needed.
The situation in the Middle East continues to escalate, with U.S. military casualties mounting due to Iran’s fierce retaliation. The death toll has risen to 6, and 3 F-15 fighter jets were reportedly downed by friendly fire from Kuwaiti forces.
Despite initially boasting of a swift resolution, President Trump has now changed his tune. He estimates the conflict could last 4 to 5 weeks but acknowledges it might drag on much longer, leaving the door open for a prolonged engagement.