After climbing 9.7% higher last week, USA Rare Earth (USAR 6.35%) stock continued its upward trajectory today. With the conflict in Iran escalating over the weekend, many recognized the U.S.-based rare-earth miner as an attractive investment.
At the end of today's trading session, shares of USA Rare Earth stock logged a 10.4% gain from its closing price before the weekend.
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There's more than one reason why shares flew higher today
With the increase in military action in Iran this weekend, investors were reminded of the appeal of USA Rare Earth, which could help the United States shore up its rare-earth supply. The company owns the Round Top deposit in Texas, a vast resource of heavy rare-earth elements, and it's developing a rare-earth magnet production facility in Oklahoma.
NASDAQ: USAR
Key Data Points
China, which accounts for the majority of rare-earth global production, has been critical of the recent U.S. action in Iran. Investors are likely fearful that the tense trade relations, which led to China imposing rare-earth export restrictions in April 2025, may resurface.
Plus, investors are likely recognizing the allure of USA Rare Earth stock, as the military action over the weekend is a reminder of the importance of rare-earth elements to the defense industry. From fighter jets to munitions to radars, rare earths are critical materials used in a variety of defense solutions.
Is USA Rare Earth stock a buy based on the military action in Iran?
With the potential to shore up the domestic supply of rare-earth metals, USA Rare Earth is a compelling mining stock for investors to consider right now. Management projects 2030 revenue of $2.6 billion and free cash flow of $900 million. But that assumes (among other things) the successful development of the company's mining operations and magnet production facility. There are still plenty of challenges ahead for the company, and the onset of military action in Iran shouldn't distract potential investors from the risks of investing.
