At a June summit in Singapore, former President Trump intends to press President Xi to curb Beijing’s provision of drones and missiles to Iran, citing risks of regional destabilization and threatening secondary sanctions.

Should China agree to restrict arms exports, US policymakers may authorize additional military aid to allies or accelerate procurement of fighter jets and bombers, potentially boosting Boeing’s defense segment order flow.

Escalating US-China diplomatic friction over Iran could drive defense sector stocks higher as investors anticipate increased government spending on military hardware and aircraft modernization programs.