The reason the is doing bad is not only because of the arms industry. The US presidency can't handle a costly war, and this is why it keeps hesitating. If the US put multiple of its carriers, jets and drones, they would obliterate Iran's capacity of controlling Ormuz, but taking heavy losses in the process. The losses are material ones, like missiles, aircraft, and ships, but also personnel as well. The problem is that the US can't take those losses.

Neoliberalism also made the US industry weak, since they depend on a large supply chain network for most of their arms, a network with many logistical choke points, like Chinese rare earth metals.