Analysis & Reports

Iran has closed the Strait of Hormuz since February 2026, significantly reducing oil traffic and impacting global oil prices. The closure follows a U.S.-Israel military action against Iran, which has led to economic struggles within Iran. Meanwhile, Saudi Arabia and the UAE are rerouting oil exports to mitigate the impact of the closure.

The U.S. Air Force announced the extension of the B-1 Lancer and B-2 Spirit bombers to enhance fleet readiness and prepare pilots for the upcoming B-21 Raider. This decision was made during the 2026 Air, Space & Cyber Conference, where it was noted that the B-21 is set for delivery to Ellsworth Air Force Base in 2027. The Air Force is also implementing the North Star Readiness Campaign to improve the operational capability of its bomber fleet.

In March 2023, the Israeli Air Force destroyed several Iranian F-14 Tomcats at Isfahan in Central Iran. These aircraft, originally sold to Iran in 1976, were believed to be the last operational F-14s globally. The U.S. had previously dismantled its own F-14s to prevent parts from reaching Iran.

Northrop Grumman is expanding its market share in munitions supply, engaging in discussions about eight weapons programs. Lockheed Martin is also involved in munitions production agreements and is seeking full funding from Congress. Both companies are adapting to the Pentagon's focus on increasing munitions production and have ongoing projects like the PAC-3 missile and GRIZZLY launch system.

The U.S. Army is prioritizing training for soldiers to operate drones effectively in contested electromagnetic environments as part of the Drone Dominance program. With 12,080 drones acquired, the focus is on ensuring every squad is equipped and trained by the end of fiscal 2026. Recent exercises in Germany highlighted the need for soldiers to navigate the electromagnetic spectrum effectively.

The U.S. Army is focusing on training soldiers to operate small, one-way attack drones, particularly in contested electromagnetic environments. This initiative follows the acceptance of 12,080 drones from the Drone Dominance program's first gauntlet. Training is being conducted both domestically and abroad, including exercises in Germany with NATO partners. The Army aims to ensure every squad is equipped and capable of using these drones effectively by the end of fiscal 2026.

The U.S. Army is focusing on training personnel to operate small, one-way attack drones, aiming to outfit every squad by the end of fiscal 2026. The Army has accepted 12,080 drones from the first Gauntlet of the Drone Dominance program and expects to order 60,000 more from the second Gauntlet. Training is being conducted both domestically and abroad, particularly in Germany, to ensure effective operation in contested environments.

The U.S. Air Force is seeking a ground-based, medium-caliber gun weapon system to defend against drones and cruise missiles as of September 3. This initiative aims to enhance air base defenses in response to the increasing threat from inexpensive and effective drone technology. The system must be rapidly deployable and capable of engaging multiple threats simultaneously, reflecting a significant shift in air defense strategy.

The Air Force Test Center is prioritizing safety while rapidly developing and testing new technologies, including upgrades for the B-52 Stratofortress and the introduction of Massed Modular Aircraft to replace the MQ-9 Reaper. This follows a recent incident where eight airmen died during a B-52 test flight. The center is collaborating with tech industries to enhance capabilities and integrate AI into military operations.

GM Defense delivered its first batch of PAC-3 MSE missile-housing components to Lockheed Martin on September 16, 2026, just 22 days after signing a production contract. This delivery is part of a broader effort to increase the production capacity of the PAC-3 MSE interceptor, which has seen a surge in demand due to its use in combat. The U.S. Army previously awarded Lockheed Martin a $9.8 billion contract for 1,970 interceptors.

The U.S. Army is seeking contractors to develop two prototype UAVs for the Army Blood Link project to transport blood supplies in the field. Each drone must carry 20 units of blood products and have a one-way transport radius of 30 kilometers. The deadline for proposals is September 21, with delivery expected within three months of contract award.

Latvia's government decided to purchase Czech-made Morana howitzers for its National Armed Forces on September 15, 2025, opting for this system over Sweden's Archer due to cost and delivery issues. The Morana howitzer, a 155mm system, will enhance Latvia's artillery capabilities and includes local industry participation in its procurement. Despite this decision, Latvia continues to maintain a strategic defense partnership with Sweden.

Lockheed Martin received its first shipment of critical components for Patriot interceptors from General Motors on August 28, 2023, just 22 days after signing a manufacturing agreement. This initiative aims to accelerate weapons production in response to increased demand, particularly due to ongoing conflicts involving the U.S. and its allies. Lockheed Martin is investing significantly to enhance its production capacity and supply chain resilience.

U.S. airstrikes in February 2026 resulted in 150 casualties, including 120 schoolchildren, in Minab and Lamerd, Iran. The U.N. report indicated that these strikes were indiscriminate and violated international law. Additionally, Iranian authorities faced accusations of crimes against humanity for their violent suppression of protests, leading to numerous civilian deaths and executions.

Deputy Secretary of Defense Stephen Feinberg issued a memo this week aimed at streamlining defense acquisition by encouraging the use of Generally Accepted Accounting Principles (GAAP) instead of Cost Accounting Standards (CAS). This change is intended to improve transparency and partnership with the defense industry, following concerns raised by a previous memo that suggested increased oversight. The Pentagon seeks to attract more companies and innovation into the defense sector through these reforms.

USS Cooperstown returned to Naval Station Mayport on August 31, 2026, after a four-month deployment. The Littoral Combat Ship program has been criticized for cost overruns, reliability issues, and a lack of effective combat capability, leading to a gradual retirement of the class. The U.S. Navy is adjusting its expectations and roles for the LCS amid changing maritime threats.

Doug DeMaio won an appeal against his firing as commander of the Alabama Air National Guard’s 187th Fighter Wing, which occurred in August 2022. A federal panel ruled that Alabama officials failed to provide a valid reason for his removal, ordering his reinstatement with back pay. The 187th Fighter Wing is currently transitioning from F-16s to F-35s, a process DeMaio was involved in prior to his dismissal.

The U.S. Air Force operates 183 F-22 Raptors and over 800 F-35s, while China has around 500 J-20s and 60 J-35s, with production rates of 120 J-20s annually. The J-20's combat range of 1,200 miles exceeds that of the F-22, which has a range of 530 miles. The report highlights the growing challenge posed by China's mass production capabilities to U.S. air dominance.

Lockheed Martin proposed the F-16G fighter to the U.S. Air Force to meet increasing demands for aircraft due to an aging fleet and global threats. The Air Force aims to expand its fighter inventory from 1,098 to 1,558 by Fiscal Year 2035. The F-16G would utilize the existing Block 70 production line and incorporate advanced systems to enhance capabilities. Lockheed's Greenville facility is prepared to expand production to accommodate this new order.

The Royal Navy is set to introduce four Dreadnought-class ballistic missile submarines, with the first, HMS Dreadnought, expected to be commissioned in the early 2030s. These submarines will replace the aging Vanguard-class and are designed to enhance the UK's nuclear deterrent capabilities. Each submarine will be equipped with 12 Trident 2 D5 missiles and advanced stealth technology, including new X-rudders and Pumpjet propulsors for reduced noise.