What will 2026 bring? As we end 2025 US President Donald Trump is expanding its conflict with Venezuela and announced that it would support another direct attack on Iran if it continued to rebuild its military and nuclear capabilities. Meanwhile, Saudi Arabia warned the UAE to back off in Yemen following airstrikes by Riyadh, raising a new round in the Middle East conflict. China simulated a blockade of Taiwan. Ukraine called for a 50-year support of its defense by the US if it were willing to negotiate a peace treaty while Russia stated (without proof so far) that Ukraine attempted to attack one of Putin’s homes with dozens of drones in order to shift the conversation. Israel has warned about attacking Hezbollah forces in Lebanon, who is seen as too weak to remove them from their territory. And “peace” in Gaza is on hold as Israel waits for Hamas to return a final casualty to them and various nations decide how (and how much) they will support creating an international peace force in the region. Something for investors to keep in mind as investor consider whether the run higher in defense stocks still has room to run.