The United States Department of Defense has signed three new agreements with major defence contractors to significantly increase missile production, as ongoing conflict in the Middle East continues to strain military stockpiles.
The move follows heavy use of interceptor missiles by the US, Israel, and Gulf allies to defend against retaliatory strikes from Iran, raising concerns about dwindling supplies.
Under the agreements, Lockheed Martin and BAE Systems will boost production of “seeker heads” — a critical component of the THAAD missile defence system — by four times. THAAD has been heavily deployed in the current conflict.
The Pentagon said the deal effectively places the defence industrial base on a “wartime footing.” Earlier, Lockheed Martin had already outlined plans to increase THAAD output from about 100 units annually to roughly 400 in the coming years.
In a separate agreement, Lockheed Martin will also accelerate production of the Precision Strike Missile (PrSM), a next-generation missile system recently used against Iran. The PrSM replaces the older ATACMS system and builds on a $4.94 billion US Army contract awarded last year.
A third deal with Honeywell Aerospace focuses on increasing production of key components for US munitions, including navigation systems.
Meanwhile, diplomatic efforts appear to be faltering. Iranian state media reported that Tehran has rejected a US-backed peace proposal aimed at ending the conflict.
According to an unnamed senior official quoted by Press TV, Iran dismissed the plan and insisted it would determine the timing and terms of any ceasefire — not Washington.
“Iran has responded negatively to an American proposal aimed at ending the ongoing imposed war,” the official said, adding that the war would end “when Iran decides,” not when Donald Trump envisions.
Although there has been no formal statement from Tehran, Foreign Minister Abbas Araghchi has yet to comment publicly. Reports of the rejection have been echoed by Iranian outlets such as Mehr and Tasnim.
Efforts at mediation are ongoing. Pakistani officials said Islamabad relayed a 15-point US proposal to Iran in a bid to de-escalate the nearly month-long conflict.
However, Iran is said to have outlined its own conditions for peace, including an end to attacks on its territory and leadership, guarantees against future aggression by the US and Israel, and compensation for war-related damage.
Tehran is also demanding a halt to hostilities across all regional fronts, including actions against allied groups like Hezbollah, and is seeking international recognition of its sovereign rights over the strategically vital Strait of Hormuz.
