Global defense stocks surged early Monday following a military escalation in the Middle East, with Germany's Hensoldt and Britain's BAE Systems among the top performers. Thales, Renk, and Leonardo also saw increases in their shares. The broader Stoxx 600 index fell 1.4%, reaching a two-week low. The rise comes after the U.S. and Israel launched widespread attacks on Iran, resulting in the death of Iranian Supreme Leader Ayatollah Ali Khamenei. The prospect of an escalation also led to increased oil prices and energy companies' shares.