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.

S.J. Res. 117, titled "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," was introduced in the Senate on March 5, 2026, and subsequently referred to the Committee on Foreign Relations. This bill aims to mandate the withdrawal of U.S. forces from any unauthorized military engagements with Iran. The bill text explicitly states that Congress has not declared war on Iran and that the President has notified Congress of military force initiation against Iran on February 28, 2026. This joint resolution does not specify any direct funding amounts, as its purpose is to direct military action rather than allocate funds. The mechanism of impact is through policy change regarding military engagement. If enacted, it would directly reduce the scope of military operations, thereby decreasing demand for defense-related services and equipment. The bill's passage would also likely influence global oil markets due to the potential for reduced geopolitical tensions in the Middle East, though the immediate withdrawal could also introduce volatility. Structural losers under this resolution would be defense contractors, including Lockheed Martin Corporation ($LMT), RTX Corporation ($RTX), The Boeing Company ($BA), and Northrop Grumman Corporation ($NOC), as reduced military engagement directly impacts their revenue streams. The bill's stated intent to remove forces from hostilities would lead to a decrease in demand for their products and services. Oil majors such as Exxon Mobil Corporation ($XOM), Chevron Corporation ($CVX), and BP p.l.c. ($BP) could experience volatility in oil prices, with potential for downward pressure if geopolitical risks decrease, or upward pressure if the withdrawal creates short-term instability. Over the past 30 days, defense stocks have shown negative trends: $LMT is down -2.61%, $RTX is down -2.67%, $BA is down -4.4%, and $NOC is down -5.98%. In the last 7 days, however, these stocks have seen positive changes: $LMT +6.57%, $RTX +6.02%, $BA +12.2%, and $NOC +3.6%. Oil majors have shown mixed performance over the past 30 days: $XOM is up +8.36%, $CVX is up +4.72%, and $BP is up +20.81%. Over the last 7 days, $XOM is down -4.72%, $CVX is down -5.62%, and $BP is up +0.27%. The bill is currently in the early stages, having been referred to committee. Similar related bills (SJRES104 and SJRES114) were also referred to the Committee on Foreign Relations, with SJRES104 failing a motion to discharge, indicating a challenging legislative path ahead for such measures. For this bill to become law, it must pass both the Senate and the House of Representatives and then be signed by the President. Given its early stage and the prior rejection of a similar measure (SJRES104) in a discharge vote, the legislative path is uncertain and likely protracted. The bill's sponsor, Senator Schiff, is a senior member, but the bill's progress will depend on committee action and broader congressional support.