Trump’s Two Sons Join In... Low-Cost Drones Emerge as Top Blue Chip in Iran War [Global Focus]

PowerRus, Funded by Trump’s Sons, Begins Promoting Low-Cost Drones Across the Middle East
Difficult to Intercept with Fighter Jets
Rapid Shifts in the Defense Industry

It has been revealed that the two sons of U.S. President Donald Trump have invested in Powerus, a U.S.-based manufacturer of low-cost unmanned aerial vehicles (drones), during the ongoing war with Iran, sparking controversy over a potential conflict of interest.

Eldest son of U.S. President Donald Trump, Donald Trump Jr. (left), and second son Eric Trump. Photo by AP Yonhap News

As the U.S. military used low-cost suicide drones for the first time in the current Iran war and demonstrated their high effectiveness in actual combat, stocks related to low-cost drones have become popular on Wall Street. Drones that were once criticized as being nothing more than crude Lego toys have now, due to the Iran conflict, been elevated to key items in the defense industry. This shift is expected to trigger major changes across the entire defense sector, including air defense systems and fighter jets.

U.S. Powerus, Funded by Trump’s Sons... Controversy Over Drone Sales in the Middle East

According to Bloomberg News on the 9th (local time), sources said, "Earlier this month, Powerus, the drone company invested in by President Trump’s sons, met with officials from the United Arab Emirates (UAE) in Abu Dhabi to discuss drone sales." The report continued, "Since last month, Powerus has been visiting oil-producing countries in the Middle East, proposing the introduction of drone air defense systems to each country."

An image of PowerLess's Guardian-1 drone, a low-cost unmanned aerial vehicle (drone) manufacturing company invested in by U.S. President Donald Trump's two sons. Powered by PowerLess's official website.

Powerus is a U.S. manufacturer of low-cost drones in which Donald Trump Jr. and his younger brother Eric Trump acquired stakes last month. Although the exact shareholding percentages have not been disclosed, both sons have joined the Powerus board of directors. Powerus also plans to merge within the year with Aureus Greenway Holdings (AGH), a golf course management company owned by the Trump family, and pursue a listing on the Nasdaq.

Last month, the company unveiled a small interceptor drone named Guardian-1. Powerus stated, "The Guardian-1 is optimized for intercepting the Iranian-made Shahed drone," adding, "Currently, to shoot down an Iranian Shahed drone, which costs about $20,000 (approximately 29.6 million won), the U.S. military uses missiles costing between $500,000 and $2 million (about 740 million to 2.96 billion won) each. By using the Guardian-1, this cost-effectiveness imbalance can be resolved." However, the unit price of the Guardian-1 has not yet been disclosed.

With the Iran war ongoing, the Trump sons’ investment in a drone company has immediately raised conflict-of-interest concerns in the U.S. The controversy is intensifying as the Department of Defense is about to launch a large-scale drone procurement project. According to CNN, the Department of Defense plans to implement the 'Drone Superiority Program,' a procurement project worth $1.1 billion (about 1.6 trillion won) from this year through next year, and Powerus is reportedly planning to participate in the bidding.

Low-Cost Drone Swarm Technology Firm Swarmr Sees IPO Price Surge Sixfold

Interest in low-cost drone-related stocks is growing on Wall Street as well. Swarmr, a drone software company that debuted on the market on the 17th (local time) last month, saw its stock price soar to more than six times its IPO price on its first day. According to CNBC, Swarmr's IPO price was $5, but it began to surge immediately after listing on the 17th, closing at $31. During the height of the Iran war, it surpassed the $60 mark before settling around $40 currently.

Swarmr is a drone swarm software company founded in 2023. Rather than directly manufacturing drones, it develops software programs utilizing artificial intelligence (AI) that enable low-cost drones to be deployed en masse into enemy territory, overwhelming adversary air defense networks. Since April 2024, Swarmr has accumulated vast amounts of data by executing over 100,000 combat missions in Ukraine.

As a result, Swarmr attracted strong investor interest even before its IPO. Prior to listing, Swarmr’s equity value was estimated at about $60 million (approximately 8.88 billion won), but its market capitalization surpassed $380 million (approximately 56.26 billion won) immediately after going public, establishing the company as a major player in the drone industry.

The main reason for the growing interest in low-cost drones on Wall Street is the rapidly increasing demand on actual battlefields. Until now, the U.S. military had focused on operating large-scale interceptor drones like the MQ-9 Reaper, but the Iran conflict has highlighted the importance of low-cost drones, prompting a major strategic shift.

Low-cost drones, such as the Iranian Shahed drone, have a range of approximately 700-900 km, weigh 40-50 kg including the warhead, and fly at low altitude at speeds of around 180 km/h. While their speed is much lower than that of ballistic missiles, which can reach up to Mach 7 (8,645 km/h), their ability to be deployed en masse in confined areas allows them to overwhelm existing missile defense systems through sheer numbers.

According to Defense News, this is the first time the U.S. military has deployed low-cost suicide drones in the Iran war. The drones used in the conflict are called "LUCAS," developed by American defense startup SpecterWorks, modeled after Iran’s Shahed drone. The unit price is reportedly $35,000 (about 5.18 million won).

The need for developing low-cost drones in the U.S. was first raised during clashes with Yemen’s Houthi rebels in 2019. At that time, the Houthis, supported by Iran, attacked Saudi Arabia’s Abqaiq oil facilities, Red Sea oil facilities, and oil tankers with Shahed drones costing about $20,000 each. To intercept them, the U.S. used Patriot missiles costing over $4 million (about 600 million won) per missile. Simply put, the cost-effectiveness gap exceeded 200 times.

Low-Cost Drones Threaten Fighter Jets... Elevated Status on the Battlefield

AP Yonhap News

Established defense contractors are also responding by developing systems capable of intercepting low-cost drones with fighter jets. On the 8th, British defense company BAE Systems announced that it had successfully applied its precision-guided rocket system to the Eurofighter Typhoon, enabling the interception of Iranian Shahed drones with fighter aircraft.

As Shahed drones have been used for attacks on fighter jets in the current conflict, incorporating interception systems to defend against drone attacks on fighter aircraft has become a critical challenge. According to CNN, at the end of last month, a U.S. E-3 Sentry airborne early warning aircraft stationed at a Saudi Arabian airbase was destroyed in an attack by a Shahed drone.

The Islamic Revolutionary Guard Corps (IRGC) of Iran also engaged in psychological warfare by releasing a video claiming that an F-15 fighter jet failed to intercept a Shahed drone. On the 2nd, the IRGC posted a video on social media allegedly showing a U.S. F-15 in pursuit of a Shahed drone over Erbil in Iraq’s Kurdistan region, failing to intercept it. While the authenticity of the video remains unverified and allegations of manipulation have surfaced, it is widely acknowledged that the status of low-cost drones has risen.

CNBC noted, "Low-cost drones are significantly disrupting the traditional paradigm of warfare, which was centered on advanced fighter jets, in the Iran war," adding, "This is opening a turning point in the defense market, which had been monopolized by major defense companies like Lockheed Martin and Northrop Grumman, creating new opportunities for startups." The report also predicted, "The role of drones will increasingly expand in future missile defense initiatives such as the 'Golden Dome' project advocated by President Trump."

This content was produced with the assistance of AI translation services.