Negotiating' With Iran While Monitoring Tehran's Economic Deterioration

Pentagon deputy secretary Steve Feinberg asked major U.S. defense firms to accelerate production and deliveries of weapons and sensors, citing concerns about shortages and gaps tied to the Iran conflict. In an Aug. 5 letter seen by Bloomberg, he targeted programs including wide-area surveillance, air-defense sensors and interceptors, and missile-tracking systems, asking for plans by late August.

The Pentagon, according to a memo reported by The Washington Post and confirmed by spokesman Sean Parnell, is urging defense contractors to accelerate production of critical munitions within 21 days, citing rapid U.S. missile and interceptor usage in the Iran war. CSIS estimates Patriot and THAAD stocks fell sharply. The memo also ties plans to shaping the fiscal 2028 defense budget.

RTX says it won a $536 million U.S. contract to sustain BGM-71 TOW missile production and support U.S. stockpile replenishment through 2027, according to the report. The deal’s quantities and further details were not disclosed. RTX cites up to 10,000 missiles per year capacity and 700,000+ produced since the program began. Ukraine has received about 13,000 TOW missiles via U.S. assistance.

The U.S. Missile Defense Agency awarded Raytheon, part of RTX, a $745 million contract to manufacture and assemble Standard Missile-3 Block IIA interceptors under Foreign Military Sales for the U.S. and Japan, according to a DoD contract announcement. The deal covers fully assembled “All-Up Rounds” and includes $275.6M FY2026 U.S. funds plus $277.7M Japan funding.

RTX won a U.S. Department of War deal worth up to $745.4 million for SM-3 Block IIA ballistic missile interceptors, extending production through 2031. The first tranche totals $275.6 million from the U.S. defense budget and $277.6 million from Japan’s MoD. SM-3 Block IIA uses a kinetic warhead and Mk 41 launchers. It saw documented combat use in April 2024 against Iranian missiles.

Raytheon, according to the U.S. Department of Defense, won two missile-defense related contracts totaling $1.3 billion. It received $745.4 million for Standard Missile-3 Block IIA rounds and $536 million to modify the TOW Weapon System contract, raising its cumulative value to $750.8 million. Work is set in Tucson and Huntsville, with completion dates through 2031.