Ever since hostilities broke out between the Israelis and Palestinians in October there’s been a lot of concern about the conflict spreading.
Well, it’s spread.
Increasingly over these past few weeks, the United States and Iran have been trading blows.
Iranian proxy groups have targeted U.S. forces with at least 46 drone and rocket attacks in just the past three weeks, injuring 56 American service members.
The most recent took place Wednesday night, when a drone laden with explosives crashed into U.S. soldier barracks at a base in Iraq.
Thankfully, the explosive component failed to detonate, but you can imagine the outrage and likely response had dozens of American soldiers been killed by an Iran-sponsored terrorist attack.
We were that close.
And in response, the Pentagon hastily dispatched two F-15 fighter jets to bomb an Iranian weapons depot in Syria. That was the second retaliatory strike attack after another precision strike was carried out on October 26.
So we’re already trading blows with Iran. It’s just a matter of how far it’ll go.
And given Israel’s indiscriminate bombing campaigns, flat rejection of any potential ceasefire deal, and recent pledge to take control of Gaza indefinitely…
I’d say we’re in for a long and bloody conflict that will increasingly ensnare the United States.
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So long as America is providing political support, arms, and funds to Israel, the countries will be considered one and the same by our enemies.
Conversely, Iran, Russia, and the semi-autonomous militia groups they support have become thoroughly entwined as well.
Iran and Russia often rely on each other to evade Western sanctions.
Russia has also played a key role in helping Iran develop its nuclear capabilities, and Iran has furnished Russia with drones and other equipment to aid its invasion of Ukraine.
Hamas itself has sent delegations to Moscow at several points over the years, including days after the October 7 attack on Israel.
And last week, the U.S. intelligence community accused Russia's Wagner mercenary group of providing an air defense system to Hezbollah, the Iran-backed Lebanese militia.
Russia also has assets in Syria, including a naval port and other military infrastructure that it’s used to counterbalance American influence in the region.
The Pentagon even had to give Russian forces a heads-up before executing its recent retaliatory strikes just to make sure they didn’t misinterpret them.
So the bonds between these pariah states are thickening. And in fact, the war in the Middle East has done Vladimir Putin a tremendous favor by drawing Western attention and resources away from Ukraine.
Thus the lines have been drawn.
We’ve been fighting a proxy war against Russia in Ukraine for the past year and a half. And now we’ve been drawn into a second live-fire conflict in the Middle East.
That doesn’t bode well for anybody.
Except for defense contractors and technology providers, that is.
I’ve been saying for years that as chaos spreads throughout the world, defense and security stocks provide one of the few viable safe havens.
We’ve seen that over the past month as many defense contractors surged to double-digit gains.
And there’s more to come, because this conflict has only just begun to boil over.
That’s why there’s never been a better time to check out my Secret Stock Files investment service, where I focus on cutting-edge defense technology.
You can even get my latest report on AI warfare here.
Fight on, Jason Simpkins Simpkins is the founder and editor of Secret Stock Files, an investment service that focuses on companies with assets — tangible resources and products that can hold and appreciate in value. He covers mining companies, energy companies, defense contractors, dividend payers, commodities, staples, legacies and more… In 2023 he joined The Wealth Advisory team as a defense market analyst where he reviews and recommends new military and government opportunities that come across his radar, especially those that spin-off healthy, growing income streams. For more on Jason, check out his editor’s page. Be sure to visit our Angel Investment Research channel on YouTube and tune into Jason’s podcasts. Want to hear more from Jason? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.