US signs $135 billion defense contracts for nuclear submarines and missiles amid Iran conflict

The US Department of Defense has signed major multi-year contracts with defense contractors total exceeding $135 billion, aligning with President Donald Trump’s administration goals to reinforce the military and replenish weapons stockpiles amid the ongoing war with Iran, Bloomberg reported.

The Pentagon announced the two massive defense agreements on Wednesday.

To expand the production of Patriot interceptor missiles, the Pentagon reached a seven-year, $59 billion deal with Lockheed Martin Corp. The department also announced contracts totaling up to $76.6 billion with General Dynamics Corp. and Huntington Ingalls Industries Inc. for the construction of nuclear submarines and the modernization of shipyard infrastructure. Under this arrangement, the defense contractors will build nine Virginia-class “Block VI” attack submarines equipped with advanced Tomahawk cruise missile launch systems, along with five Columbia-class nuclear submarines.

Bloomberg noted that the war in Iran has heightened concerns regarding the US defense industrial base. US forces in the Middle East have consumed significant volumes of expensive interceptor missiles—costing approximately $4 million each—to defend against Iranian ballistic missiles and drones. The current rate of expenditure remains out of pace with production capacities.

In June, the Financial Times reported that defense firms were attempting to shift toward a manufacturing model that allows missiles to be assembled quickly, en masse, and at lower costs to supply the US arsenal under wartime conditions.

The agreement with Lockheed marks the second major long-term contract dedicated to missile production, according to Bloomberg. The defense contractor previously secured a $35 billion Pentagon contract aimed at quadrupling its production of THAAD air defense missiles over a seven-year period.

The new agreement with the company will enable it to increase the production of THAAD missiles from approximately 600 annually to around 2,000 by 2030.

According to calculations published on July 26 by the Iranian news agency Tasnim, total US military losses over the prior two weeks of war with Iran could reach $20.6 billion. The agency analyzed data provided by the Islamic Revolutionary Guard Corps (IRGC) regarding destroyed and damaged US weaponry. Tasnim claimed the largest loss category involved US air defense systems and radars, totaling approximately $7.5 billion in damage. Logistics, storage facilities, and infrastructure ranked second, accounting for $6.8 billion.

Wartime expenditures and supplemental budget requests

Meanwhile, US Secretary of War Pete Hegseth previously estimated total US expenditures on the war with Iran at $37.5 billion. Last month, the Trump administration requested approximately $90 billion in supplemental funding from Congress, largely tied to the conflict in the Middle East.

According to Bloomberg, the administration has requested a total defense budget of $1.5 trillion as part of “generational investments to prepare for future conflicts.”