Share prices of Western military contractors shoot up after Israel violence

Shares of the largest military and defense corporations of NATO member states and major EU contractors surged on Monday as arms makers stand to benefit from Israeli-Palestinian conflict.

Stocks of major US defense contractors jumped amid the conflict with Lockheed Martin, the maker of HIMARS rocket launchers, and Northrop Grumman Corp adding 8.3% and 10.6%, respectively. RTX formerly known as Raytheon Technologies Corp gained almost 4% "amid expectations of increased defense spending", according to Victoria Scholar, the head of investment at stockbroker Interactive Investor.

In the EU, among leading defense stock gainers were shares of the Swedish aircraft manufacturer Saab, which surged in price by more than 8%. As of Monday afternoon, shares of the German arms manufacturer Rheinmetall were up 5.7%, the British weapons maker BAE Systems gained 4.2%, while stock of Italy's military helicopter producer Leonardo was up 5.7%.

The latest escalation began early on Saturday, when armed Palestinian groups launched a surprise attack on multiple locations along the Gaza border, with Israel launching a counteroffensive in response.

Israeli officials have estimated that over 700 people have been killed in the Hamas assault, over 2,200 have been wounded and 100 have been kidnapped, including citizens of European countries and the US. Following Israel's retaliatory air strikes, over 400 people have been killed and some 2,200 wounded in Gaza, according to Palestinian officials.

For more stories on economy & finance visit RT's business section