Israel declared war and ordered a 'complete siege' of the blockaded Gaza Strip on Monday in retaliation against Hamas for its surprise terrorist attack over the weekend. Israel on Sunday responded to Hamas' missile barrage with a bombardment of its own. The combined death toll reportedly climbed above 1,100 early Monday. Defense stocks spiked Monday on mobilization efforts.
Hamas Attack
Rockets appeared to be a leading tool in the assault. Hamas attackers fired 2,200 rockets at Israel around 6:30 a.m. local time Saturday, according to reports. Hamas, which the U.S. designates as a terrorist organization, claimed it fired at least 5,000 rockets at southern and central Israel. The Israeli military estimated 1,000 Hamas fighters also participated in the incursion. Reports indicate more than 130 people were captured from Israel and taken to Gaza.
The Lebanon-based Hezbollah group said it fired dozens of rockets at Israeli positions Sunday morning in solidarity with the "Palestinian resistance." Israel's vaunted military and intelligence operations were caught entirely off guard.
"This is our 9/11. They got us," said Major Nir Dinar, spokesperson for the Israeli Defense Forces. "They surprised us and they came fast from many spots — both from the air and the ground and the sea," Reuters reported.
President Joe Biden is "ready to offer all appropriate means of support to the Government and people of Israel," according to a White House statement Saturday.
Israel formally declared war on Sunday and launched its own bombardment in response, destroying more than 800 targets and "hundreds" of fighters, the IDF reported.
More than 700 people in Israel were killed as of early Monday with more than 2,150 injured, according to local reports. In Gaza, an estimated 493 people have been killed and another 2,300 injured in Israel's retaliatory strikes.
Iron Dome Breached
Israel's first line of defense is the Iron Dome missile defense system. Introduced in 2011, the mobile, land-based system intercepts and destroys short-ranged rockets and mortars with a 90% success rate.
The Iron Dome uses tracking radar and Tamir interceptor missiles to trace the flight path of threats and neutralize them. The Tamir missiles are produced in a partnership between RTX's Raytheon business and Israel-based Rafael Advanced Defense Systems. Tamir missiles feature electro-optical sensors, steering fins and proximity fuze blast warheads. The Iron Dome can detect, assess and take out incoming projectiles launched from 4 to 70 kilometers.
Most of the Tamir missile components are produced through Raytheon's supply chain in the U.S., according to RTX.
However, the Iron Dome struggled with the overwhelming barrage during a 20-minute span. Many missiles were destroyed, preventing further casualties. But some managed to breach the cover. Reports indicated at least one hospital in Israel was hit.
Hamas Arsenal
The Hamas militant group acquires missiles from abroad and produces them domestically with foreign assistance, according to data from the IDF and Jerusalem Center for Public Affairs.
Hamas' arsenal includes 107 mm rockets, the Fajr-3 and Fajr-5 from Iran, Russian-made Grad rockets as well as the M-302 from Syria.
The group receives foreign help to produce a range of missiles domestically, including the Q-12, S-40, M-75, J-90 and A-120.
Hezbollah's missile arsenal includes 107 mm rockets, the Type-81, Fajr-3, Fajr-5, M-302 and the Iranian-made Fateh-110, among others.
Hamas received support from ally Iran for the surprise attack, according to a report Saturday from The Wall Street Journal. U.S. Secretary of State Antony Blinken said on Sunday the State Department had not yet "seen evidence that Iran directed or was behind this particular attack."
Sources for both the Hamas leadership and the Iranian government said Iran played no role in planning the assault, according to the WSJ.
Israel, Allies Respond
The U.S. plans to move the USS Gerald R. Ford Carrier Strike Group closer to Israel, Defense Secretary Lloyd Austin announced Sunday. The strike group includes the aircraft carrier, a guided missile cruiser and four guided missile destroyers.
Austin also announced the U.S. would "augment" its fighter squadrons in the Middle East under U.S. Central Command. The U.S. plans to send more F-35, F-15, F-16 and A-10 squadrons to the region, and provide munitions to Israel.
Twenty to 25 F-15 and F-35 fighters could head to the region, but the exact number is unclear, CNN reported.
The F-35 is manufactured in collaboration between Lockheed Martin, Northrop Grumman, BAE Systems and RTX's Pratt & Whitney division. Boeing manufactures the F-15. The F-16 fighters are made by Lockheed and General Dynamics. Northrop Grumman leads production for the A-10 with support from Boeing.
Defense Stocks
Defense stocks spiked early Monday as Israel and the U.S. mobilized their response.
RTX stock surged 4.6% Monday. LMT stock swung roughly 8.9% higher to reclaim its 50-day moving average. Northrop Grumman shares leapt 11.4% to jump back well above their 200-day line.
GD stock rallied 8.4% to push above its technical moving averages.
BA stock rose slightly.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
