How Could Operation Epic Fury Profit America’s Industrial Sector?
The military campaign to erode Iran’s security threat to the United States and its allies, dubbed Operation Epic Fury, has been a resounding success. The death of Ali Khamenei and most of his followers has demonstrated to our adversaries that the United States is stronger than ever and would utilize kinetic options to further its interests. However, beyond its logistical/tactical feats, Operation Epic Fury significantly impacted the global economy, most notably oil (the Brent Index opened on the 19th of March with 120 USD per barrel for crude). Although detrimental to the average American taxpayer, Washington could exploit the economic turmoil to its advantage. By leaning on its strong domestic industries, the United States could reap great economic rewards from Operation Epic Fury, positioning Washington in a stronger position prior to the military campaign.
The United States' defense sector would see strong growth throughout this campaign. War is good for business, especially for the emerging tech heavy conflicts that the United States has recently executed. Companies like Raytheon, Lockheed Martin, and Northrop Grumman are pioneers in developing lethal and advanced munitions for American warfighters. Indeed, Lockheed Martin’s precision strike missile (PrSM) has made its debut in Operation Epic Fury: eroding Tehran’s military missile systems and destroying countless naval targets.
By demonstrating their weapon systems’ effectiveness and lethality in combat, the defense base is well positioned to demonstrate the value of further investment from foreign buyers. For example, European governments would look upon the successes of such weapons and deem them a necessary addition towards their own munitions stockpiles, increasing the United States’ weapons exports. The increasing defense exports would in turn produce more taxable income for the United States. Operation Epic Fury has stimulated America’s military-industrial complex, encouraging the development of new technologies - as seen from the fielding of the Low-Cost Uncrewed Air Combat System (LUCAS). From recent defense sector developments, we can see an ever-evolving and ever-improving military-industrial complex. America’s defense contractors are responding to the demand signals of the United States Department of War for advancements in one-way, low-cost air systems to lower costs of our sorties. Accurately, and rapidly, addressing demand signals from its contracts is a key component of ensuring America’s defense industry is developing appropriate weapons for its clients. Consistent delivery would ensure the United States’ position as the best armaments producers in the world. The Middle East campaign is testing the responsiveness of the American defense ecosystem, which is necessary to ensure they continue to produce exquisite weapons platforms.
Another instance is the oil industry. Although energy independent —the United States is the world’s largest oil producer —not all its oil is suitable for public consumption. It is heavy oil which is predominantly found within gas stations across the United States (American oil strategy is to sell sweet oil and circulate heavy for domestic consumption). The Trump administration’s 2026 intervention in Venezuela has provided the homeland with a partner with massive amounts of crude oil deposits. Donald Trump is signaling oil companies to invest $100 billion in Venezuela to jump start the oil industry there. If realized, this would benefit American domestic fuel makers. Oil refineries in the United States - particularly the American gulf - specializes in processing heavy, viscous oil commonly imported from Venezuela, as opposed to the lighter, sweeter variant produced by the American fracking industry. Therefore, Venezuelan crude would further supply the oil market in the United States as it would displace barrels produced in the U.S., Canada, and Mexico. America’s fracking industry would be incentivized to improve their export portfolio, expanding in the Asian or European energy market, for example, which would yield high revenue on account of the surging energy prices brought about by Operation Epic Fury. Additionally, although still responsive to global prices, the domestic-heavy WTI price index would increase as domestic supply would tighten, strengthening export revenue from key oil heavy industries.
The United States government has recently approved a new ultra-deepwater oil drilling plan to offset American dependence in the Strait of Hormuz. On March 14, Donald Trump approved an oil drilling project in ultradeep waters of the Gulf of America worth $5 billion. BP, who is the contracted oil company, has projected it will produce 80,000 barrels of oil per day from six wells starting in 2029 in a section of the seafloor - known as Kaskida - that is estimated to hold 10 billion barrels of crude. In the same article, the United States Department of Energy approved an immediate 13 percent increase in exports of liquefied natural gas (LNG) a key energy resource. As we can see, Operation Epic Fury has galvanized the United States energy sector. With rising energy prices, particularly in Asia, the United States could accrue stronger revenue for energy resources such as petroleum and LNG exports.
Th rising oil prices from the military campaign is also a net positive for the American public. In a Wall Street Journal article, oil-rich states, particularly Texas, New Mexico, and Oklahoma have done quite well during the surging energy prices. With oil prices rising, domestic oil companies such as Chevron, Exxon Mobil, as well as European subsidiaries in America, would be incentivized to increase hiring to maximize production, lowering unemployment. Additionally, this would benefit state finances as they would enjoy slimmer budget deficits. For example, Alaska’s $1.6 billion deficit would be less of a hassle to mitigate as it would not have to rely on its savings to close the gap. This would allow Alaska, and other oil producing states, to free up capital to fund domestic projects, i.e. public infrastructure and economic investment.
Operation Epic Fury has caused strong fluctuations in global markets, causing economic downturns for many countries. The geopolitical tensions within the Middle East have particularly strained American taxpayers, especially at the pump. However, the United States’ economy oftentimes resists, and improves, during wartime. America’s robust industrial sector can exploit the chaotic markets brought upon by its Middle East military campaign, improving the homeland’s net economy and defense ecosystem.
Image courtesy of Dirtsc via Wikimedia Commons, © 2013. Some rights reserved .
The views and opinions expressed in this article are those of the author and do not necessarily reflect those of the wider St Andrews Foreign Affairs Review team.
