So, the lower stock price, combined with this morning's news, sent the stock rebounding. Not only is Israel a buyer of the F-35 and other Lockheed Martin defense equipment, but if the conflict escalates and the U.S. is drawn in, that could mean the Defense Department's F-35 order reduction might not be as big, or may not happen at all.

Lockheed Martin shares are climbing Friday amid heightened geopolitical tensions in the Middle East. Increased demand for military hardware is anticipated following recent Israeli strikes against Iran.

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Lockheed Martin (NYSE: LMT), the giant defense stock that makes America's vaunted F-16, F-22, and F-35 fighter jets, tumbled 5.5% through 11:40 a.m. ET Wednesday morning. And why? As Bloomberg reports,

In the options pits, LMT is the only one seeing unusual activity. So far today, the stock has seen 13,000 calls and 6,763 puts cross the tape, which is already 2.5 times the overall options volume typically seen in an entire session. The most active contract by far is the July 520 call, followed by the January 2026 600-strike call.

Chief Executive Elon Musk said his recent attacks on President Trump [went "too far."](

So Lockheed Martin is likely to like the president's proposals (both of them). The more so seeing as it's been only a couple of months since the Air Force handed Lockheed a rather shocking defeat, when it awarded the $20 billion contract to build a sixth-generation stealth fighter, the F-47, to rival Boeing ( BA 0.96%).