Airline Stocks Slide Amid Israel-Iran Strikes, Rising Oil Prices

Israeli airstrikes on Iranian nuclear and military sites have sharply rattled global airline and travel stocks, exacerbating concerns over a possible wider Middle East conflict and soaring oil prices. U.S. airlines including American, Delta, United, Southwest, Alaska, and JetBlue experienced premarket drops of 3% to 5%, with many diverting flights away from the region due to airspace closures by Iran, Iraq, Israel, Jordan, and Syria. European carriers such as British Airways and easyJet, along with hotel groups, also saw declines amidst heightened geopolitical risks, with Israel's Prime Minister Netanyahu warning of potentially prolonged civilian sheltering and Iran retaliating with drone attacks. The spike in Brent crude oil prices to around $78 per barrel has additionally pressured oil-sensitive sectors like aviation, paints, adhesives, and tires in markets such as India, where major airlines like IndiGo and SpiceJet suffered losses compounded by a recent deadly Air India crash. Experts warn that if the conflict persists, the economic impact could be profound, as sustained high oil prices elevate operational costs for airlines and related industries, fostering a risk-averse market environment. President Donald Trump commented that further strikes could escalate in severity, adding to investor unease and market volatility.