Renewed conflict risk in the Middle East has pushed Brent crude above $90 a barrel, jolting energy and defense stocks and reshaping where risk and opportunity may sit in your portfolio. When headlines move this fast, it can be hard to tell which companies are directly exposed to the news and which are just along for the ride. This article focuses on three stocks from our Oil and Defense Stocks With Geopolitical Tailwind Exposure screener that appear positioned to benefit from the current backdrop. You will see how each stock ties into the story and where the key pressure points may be.

KLM Royal Dutch Airlines (KLMR)

Overview: KLM Royal Dutch Airlines is a global carrier based in the Netherlands that provides passenger and cargo flights, aircraft maintenance, and related services, including catering and ground handling, across a wide international network. It also runs leisure and charter operations through Transavia and operates as a subsidiary of Air France KLM.

Operations: KLM Royal Dutch Airlines generates most of its €12.2b business revenue from its Network segment at €10.6b, with additional contributions from Maintenance at €2.4b, Leisure at €1.4b and Other at €293m. Geographically, Europe and North Africa account for €5.8b of revenue, alongside sizeable exposure to the Americas Polynesia at €3.7b and Asia New Caledonia at €1.9b.

Market Cap: $37.4b

Investors looking at KLM Royal Dutch Airlines can see an unusual mix of potential value and real financial complexity. The stock screens as extremely cheap relative to some value estimates, while recent earnings growth, higher net profit margins and a 23.7% ROE highlight a business that has recently converted more of its turnover into profit. At the same time, the company leans heavily on external funding, pays a very large dividend that is not well covered by free cash flow, and carries a high level of non cash earnings. All of these factors warrant extra scrutiny. Illiquid trading and evolving leadership, including a new permanent COO, add further twists that careful investors may want to unpack before deciding how KLMR fits into their portfolio.

KLM Royal Dutch Airlines appears unusually cheap, with a sizable dividend but significant funding requirements. Get the full picture with the 2 key rewards and 3 important warning signs (2 are major!)

Chevron (CVX)

Overview: Chevron is a large integrated energy company that explores for and produces oil and gas, transports and liquefies it, refines it into fuels and chemicals, and also runs businesses in renewables, carbon capture, and other energy technologies across the globe.

Operations: Chevron generates most of its revenue from its Downstream activities, with about US$72.7b from Downstream United States and US$71.2b from Downstream International, alongside sizeable Upstream contributions of US$47.3b in the United States and US$45.3b internationally, partly offset by a large intersegment elimination of US$50.2b.

Market Cap: US$375.7b

Chevron provides direct exposure to higher oil prices through a large upstream portfolio, while also operating a global refining and chemicals business that can benefit from stronger margins and long-term demand for fuels, petrochemicals, and gas supply deals linked to data centers and industry. At the same time, revenue growth and margins have softened, the dividend is not well covered by earnings or free cash flow, and recent insider selling and management turnover raise questions about execution and capital allocation. For investors watching the current Brent spike and US Iran conflict risk, Chevron sits at the center of that story. However, the mix of valuation, cash generation, and payout quality may warrant closer inspection before deciding how it fits alongside more pure play oil or defense stocks.

Chevron’s scale across upstream and downstream operations can make headline risk appear simpler than it is. Get the full story in the 2 key rewards and 2 important warning signs (1 is major!)

Raytron TechnologyLtd (SHSE:688002)

Overview: Raytron TechnologyLtd designs and manufactures specialist chips and infrared thermal imaging hardware that sit inside defense, automotive, security, medical and industrial systems, supplying products such as thermal sensors, laser rangefinders, LiDAR, perimeter security solutions and AI powered temperature monitoring tools to customers in China, Europe and North America.

Market Cap: CN¥67.5b

Raytron TechnologyLtd sits at the intersection of defense electronics, automotive safety and AI hardware at a time when geopolitical risk is pushing governments to upgrade surveillance, targeting and perimeter protection systems. The stock is priced well below some value estimates while analysts expect strong earnings and revenue growth, backed by a net profit margin above 20% and a fast expanding product set in infrared detectors and thermal cameras. That combination of growth, margin strength and exposure to security spend is balanced by reliance on higher risk external borrowing and a volatile share price, which can quickly magnify sentiment shifts around conflict headlines. For investors who can handle those swings, Raytron’s upcoming 2026 results and new automotive thermal products could be important developments to monitor.

Raytron TechnologyLtd’s high margin infrared and AI hardware story appears to be priced as if the growth is already fully understood. Test that assumption against the analyst forecasts for Raytron TechnologyLtd and see what might be hiding behind the headline numbers.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.