The ongoing US-Iran conflict has triggered significant market volatility, prompting investment professionals to identify strategic stock picks for investors seeking protection during geopolitical turmoil. David Miller, Chief Investment Officer at Catalyst Funds, which manages $13 billion in assets, has outlined several companies positioned to benefit from the current crisis. According to Miller, while uncertainty remains high, specific sectors offer opportunities for investors looking to navigate the market disruption.
Major stock indexes experienced sharp declines for a second consecutive day on Tuesday, with the Dow Jones Industrial Average dropping more than 1,000 points. The conflict has sent crude oil prices surging to nearly two-year highs, while traditional safe havens like US Treasurys saw yields spike as traders sold government debt amid inflation concerns.
Defense Stocks Emerge as Top Picks During US-Iran Conflict
Miller identified defense-related companies as primary beneficiaries of the escalating tensions. Palantir, despite being down 21% in 2026, represents a compelling opportunity according to the investment chief. The company’s focus on software development for the defense industry, combined with its artificial intelligence and intelligence-gathering capabilities, positions it well for increased military spending.
“The fact that they’re creating software for the defense industry that is a beneficiary of AI and intelligence gathering is what determines, in many respects, how you do or do not win wars,” Miller told Business Insider. Unlike traditional weapons manufacturers, Palantir’s technology-focused approach offers unique exposure to defense sector growth.
RTX Corporation Gains From Missile Defense Demand
RTX Corporation, formerly known as Raytheon, has already emerged as an early winner from the conflict, with shares up 14% year to date. Miller highlighted the company’s exposure to missile defense systems as particularly valuable during the current crisis. According to the fund manager, companies with the strongest presence in missile defense technology are likely to see the biggest demand increases as the conflict continues.
Additionally, defense stocks have historically outperformed during periods of geopolitical uncertainty. The increased focus on military preparedness and defense spending typically translates into stronger revenue growth for aerospace and defense contractors.
Energy Sector Stock Picks Benefit From Oil Price Surge
The energy sector has experienced substantial volatility as oil prices jumped on concerns about potential disruptions to flows through the Strait of Hormuz. Miller recommended Chevron as a large-cap energy play well-positioned for the current environment. The company’s operations in Venezuela and exposure to both WTI and Brent crude pricing give it multiple advantages, according to Miller. Chevron shares have climbed 26% in 2026.
For investors willing to consider smaller capitalization stocks, Miller suggested Talos Energy, a natural gas exploration and production company. While larger domestic oil producers may be better positioned for a prolonged conflict, Talos offers exposure at lower valuation levels and can benefit from sustained oil price increases. The stock has gained 22% year to date.
Gold Miners Provide Safe Haven Exposure
Miller also identified precious metals as an important consideration during the current uncertainty. He named Agnico Eagle Mines, a Canada-based gold producer, as a strategic way to gain exposure to gold. The company’s approach of minimal hedging against gold prices makes it a direct beneficiary of rising gold values.
Meanwhile, Miller predicted that emerging market nations will increasingly shift reserves away from the dollar and into gold holdings. This trend could provide sustained support for gold producers like Agnico Eagle Mines, which has seen shares rise 37% in 2026.
The duration and intensity of the US-Iran conflict remains uncertain, making it difficult to predict how long these market dynamics will persist. Investors will likely continue monitoring developments in the region for signals about potential resolution or further escalation that could impact these stock picks.
