How The US-Saudi Defense Pact Could Reshape Middle East Geopolitics
Portfolio Pulse from Piero Cingari
Saudi Arabia is negotiating a defense pact with the U.S., which could reshape Middle East geopolitics. The pact may not provide robust defense guarantees but could mirror U.S. agreements with Asian states or the U.S.-Bahrain pact. The deal could make Saudi Arabia a major non-NATO ally, granting it access to advanced U.S. weaponry. The pact could align Saudi Arabia and Israel, and strengthen ties between Riyadh and Washington, D.C., against China's increasing influence in the region. The news had little impact on U.S. defense stock prices, with the iShares U.S. Aerospace & Defense ETF (NYSE:ITA), Boeing Co. (NYSE:BA), and Lockheed Martin Corp. (NYSE:LMT) showing minor changes.
September 29, 2023 | 3:25 pm
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NEUTRAL IMPACT
Boeing Co. (NYSE:BA) was 0.4% higher following the news of the potential U.S.-Saudi defense pact.
The news of the potential defense pact had little immediate impact on BA's price, suggesting that investors are waiting for more concrete details before making decisions.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
The iShares U.S. Aerospace & Defense ETF (NYSE:ITA) was up by a mere 0.2% following the news of the potential U.S.-Saudi defense pact.
The news of the potential defense pact had little immediate impact on ITA's price, suggesting that investors are waiting for more concrete details before making decisions.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Lockheed Martin Corp. (NYSE:LMT) was 0.2% lower following the news of the potential U.S.-Saudi defense pact.
The news of the potential defense pact had little immediate impact on LMT's price, suggesting that investors are waiting for more concrete details before making decisions.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70