The U.S. is reportedly expanding its deployment of fighter jets and support aircraft in the Middle East sharply, marking its largest air power presence in the region since the 2003 Iraq invasion.
A significant number of jet fighters, including Lockheed Martin‘s (NYSE:LMT) F-35s and F-22s, along with support aircraft, are being deployed to the Middle East, spurring speculation over Iran strikes, The Wall Street Journal reported on Wednesday.
The U.S. has also deployed a second aircraft carrier equipped with attack and electronic-warfare jets. Command-and-control aircraft, essential for coordinating large-scale air operations, are also en route. In recent weeks, additional critical air defense systems have been moved into the region.
Officials state that this firepower provides the U.S. with the option of conducting a sustained, weekslong air war against Iran. President Donald Trump has been briefed several times on his military options, all aimed at maximizing damage to Iran’s regime and its regional proxies.
However, it remains uncertain whether Trump will authorize the strike, as he has previously signaled a preference for negotiations and urged Tehran to reach an agreement. At the same time, he has hinted that action against the Middle Eastern nation could follow if talks collapse.
The Department of War did not immediately respond to Benzinga‘s request for comment.
Regime Change Odds Jump Amid Tensions
The escalation in U.S.–Iran tensions has been building for months. As strains deepen, prediction markets are increasingly pricing in the possibility that Iran’s Supreme Leader, Ayatollah Ali Khamenei, could be removed from power. Data from Kalshi shows more than $21.8 million wagered on whether Khamenei will be removed as Supreme Leader, with odds rising to 48% that he will be out before Sept. 1, 2026, up 12%.
Khamenei escalated tensions by warning of a “slap” to the “strongest army in the world” as live-fire drills temporarily shut down the vital Strait of Hormuz. The Supreme Leader’s comments came despite Iranian Foreign Minister Abbas Araqchi speaking about reaching a “general agreement on some guiding principles” with the U.S. during the Geneva talks.
As a result of the growing conflict risk, U.S. defense stocks have seen a surge. Shares of companies like Karman Holdings (NYSE:KRMN), Kratos Defense & Security (NASDAQ:KTOS), and Redwire Corp (NYSE:RDW) closed 7.84%, 5.70%, and 5% higher, respectively, on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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