Defense & Aerospace Report Defense & Aerospace Daily Podcast [Apr 07, 2026] Look Ahead w/ Byron Callan
Apr 7, 2026
Byron Callan, founder of Capital Alpha Partners and a Washington defense and aerospace analyst, examines the next phase of the US-Iran conflict and risks from attacks on Iran’s power grid and infrastructure. He covers economic and supply-chain knock-on effects, defense stock movements, the FY27 skinny budget and odd procurement line items, prospects for reconciliation and a possible $240B supplemental, and upcoming Washington events.
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Iran Retains Effective Air Defenses
- Iran still retains meaningful air defenses and strike capability despite losses, complicating U.S.-Israeli operations.
- Callan notes Iranians shot down A-10s and an F-15E and continue missile strikes on Kuwait, Israel and Gulf states.
Gulf War Shocks Ripple Through Global Supply Chains
- Energy and supply-chain shocks from Gulf conflict create broad second- and third-order inflationary effects.
- Callan highlights aluminum smelter hits, petrochemical disruptions and potential unrest in countries like Bangladesh.
Prioritize Scarce Materials For Defense Suppliers
- Prioritize defense supply chains and material allocations to mitigate price and availability shocks.
- Callan recommends government prioritization for scarce materials to protect defense and dual-use suppliers, especially third- and fourth-tier firms.