The act of buying and selling stocks and options by members of Congress has become a hotly debated item across social media and in the news due to potential conflicts of interest.
A member of Congress recently disclosed a purchase of a defense stock, which could point to another conflict of interest.
What Happened: A drone attack on a U.S. outpost in the country of Jordan killed three American soldiers was suspected to have been done by militants in Syria that were backed by Iran. The incident came during the current Middle East conflict and could lead to increased action in the region.
With tensions rising in the Middle East, defense stocks could benefit from additional purchases of weapons and defense systems.
One member of Congress bought shares of a leading defense stock days before the drone strike in Jordan.
Rep. Kathy Manning (D-N.C.) disclosed the purchase of two separate orders of Lockheed Martin Corp LMT shares. Each transaction was valued at between $1,000 and $15,000.
According to CongressTrading, the transactions were carried out by a spouse and were part of MV Capital, potentially meaning Manning did not place or was not aware of the trade.
While Manning likely didn't place the trade, she could stand to benefit from defense stocks increasing during war times.
"I'm heartbroken to learn that 3 brave U.S. servicemembers were killed in Jordan by Iranian-backed proxies. My thoughts are with the families of the soldiers who lost their lives and those injured. We must hold Iran accountable," Manning tweeted on Jan. 28.
It's the last part of Manning's tweet about holding Iran accountable that was flagged by CongressTrading.
"She serves on the Committee on Foreign Affairs which oversees legislation on ‘war powers and military deployments abroad,'" CongressTrading tweeted.
Manning, who won the 2020 election and has served in Congress since 2021, is a vice-ranking member of the Foreign Affairs Committee and also serves on the sub-committee on the Middle East, North Africa and Central Asia.
The disclosure of Manning's trades came after her tweet.
Related Link: 10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)
Why It's Important: Manning is one of the most prominent members of Congress when it comes to stock transactions. Quiver Quant data shows more than 700 trades made by Manning and $22 million in transactions since taking office.
Several members of Congress previously bought defense and energy stocks as tensions were escalating between Russia and Ukraine before a war broke out between the two countries.
Lockheed Martin could stand to benefit during times of war and if the U.S. retaliates against Iran. Manning stating she wanted to hold Iran accountable could show how she would vote or discuss the potential retaliation on her Congressional Foreign Affairs Committee.
President Joe Biden previously said that it was believed that Iran-backed militant groups carried out the attack and the responsible parties would be held responsible.
"We shall respond," Biden said.
US Defense Secretary Lloyd Austin said the country would take "all necessary actions" to protect American troops after the attack in Jordan. The Pentagon has said they are not seeking to have a war with Iran.
"The president and I will not tolerate attacks on U.S. forces and we will take all necessary actions to defend the U.S. and our troops," Austin said.
LMT Price Action: Lockheed Martin shares trade at $427.30 Thursday versus a 52-week trading range of $393.77 to $508.10.
Read Next: Conflict Of Interest? Congress Members Who Own META, GOOG, SNAP Shares Could Benefit From TikTok Ban
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