A joint resolution to direct the removal of United States Armed Forces from hostilities within or against the Islamic Republic of Iran that have not been authorized by Congress.

What Happened: On March 18, 2026, the Senate rejected a motion to discharge S.J. Res. 118 from the Senate Committee on Foreign Relations by a 47-53 vote. The bill, introduced by Senator Booker (D-NJ) on March 5, 2026, would have directed the President to remove U.S. Armed Forces from hostilities within or against Iran unless Congress subsequently authorized such action. The discharge motion required a majority to force the bill to the floor. It failed. The bill remains stuck in committee with no viable path forward. This was the third nearly identical resolution to fail this Congress (S.J. Res. 104 failed 47-53 on February 26; S.J. Res. 114 failed 46-51 on March 12). The pattern is clear: the chamber lacks the votes to force a withdrawal.

The Money Trail: This resolution authorized $0. It was a war powers directive, not a spending bill. The mechanism was a mandate to withdraw forces — passage would have required the President to redeploy assets and cease certain military operations. Failure to advance means the status quo of military engagement continues. No funding changes. No procurement cancellations. No appropriations impact. The relevant spending track is the FY2026 National Defense Authorization Act and the FY2026 Defense Appropriations bill, which separately fund Iran-related operations.

Structural Winners and Losers: Winners are incumbents benefiting from the existing geopolitical risk premium. Defense primes ($LMT, $RTX, $NOC) continue to see DoD demand for precision munitions, air defense, and bomber-related sustainment tied to Middle East operations. Energy majors ($XOM, $CVX) continue to benefit from the Iran output disruption premium embedded in global crude prices. Losers are theoretical: only if the resolution had passed would there have been negative catalysts. There are no legislative losers from a failed vote.

Market Data Analysis: Defense stocks ($LMT -15.67%, $NOC -15.54%, $RTX -9.38% over 30 days) are in significant drawdowns completely unrelated to this bill. The sell-off predates and postdates the March 18 vote, indicating sector-wide factors (likely budget uncertainty, program delays, or sector rotation). Energy stocks ($XOM -9.27%, $CVX -7.38% over 30 days) have bottomed and are showing a 7-day recovery of +3.38% and +3.47% respectively. The failed resolution removes a potential de-escalation catalyst that could have pressured oil prices, supporting the current rebound.

Timeline: S.J. Res. 118 is dead as a legislative vehicle. The only remaining path for Iran war powers legislation would be a new resolution (S.J. Res. 183 and 163 have been introduced but sit in committee). Given the pattern of 47-53 and 46-51 votes on discharge motions, the chamber remains 3-4 votes short of the 50 needed (assuming VP tie-breaker). No further action is likely in the 119th Congress.