Investing.com — European airline shares fell on Monday, as oil prices surged following escalating tensions between the United States and Iran, raising concerns over higher fuel costs for carriers.
As of 03:48 ET (07:48 GMT), was up 6.2% at $95.95, extending earlier gains. Prices had jumped earlier after Washington said it had seized an Iranian-flagged vessel, prompting Tehran to shut the strategically vital Strait of Hormuz, which handles roughly a fifth of global oil flows and had briefly reopened over the weekend before closing again.
The spike in crude prices added pressure to airline stocks, which are highly sensitive to fuel cost volatility.
Investors also grew cautious over the potential for prolonged disruption in global energy markets as geopolitical risks intensified.
Shares of major listed European carriers, including , , , , , , and traded lower between 3.3% and 4.8% on the day.
The declines come as the U.S.-Iran conflict entered its eighth week, with uncertainty lingering over the prospects for further ceasefire talks ahead of a looming deadline.
Iran’s reported rejection of additional negotiations and the continuation of a U.S. naval blockade have heightened fears of sustained supply disruptions.
Airlines, already navigating fluctuating demand and operational costs, now face renewed headwinds from rising jet fuel prices, with market sentiment turning cautious across the sector.