In June, Iran announced its military had shot down a U.S. drone and claimed its nation was "ready for war."
The country has rejected accusations from the United States that it violated terms of a 2015 nuclear agreement and it could once again be facing U.N. sanctions.
This is a critical time on the world stage, but it’s also caught the attention of Wall Street and defense stock investors.
When geopolitical uncertainty rears its ugly head, defense stocks tend to soar.
And given the U.S. commitment to a strong defense, some of these investments can even be considered resistant to recessions.