Iran conflict pushes up oil prices, airline and cruise stocks plummet

LootboxPhobia · 2026-03-10T02:16:01+00:00

Affected by the surge in crude oil prices, major U.S. airline stocks generally declined on Monday, with United Airlines down 6% and American Airlines down 5%. Oil prices rose by approximately 20% due to market concerns triggered by tensions in the Middle East. Analysts warn that if the situation persists, airlines will face severe financial pressure and may even be forced to suspend operations.

LootboxPhobia

2026-03-10 02:16:01

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Investing.com - On Monday, the stock prices of United Airlines (NASDAQ:UAL) fell 6%, American Airlines (NASDAQ:AAL) dropped 5%, Delta Air Lines (NYSE:DAL) declined 4.5%, and Southwest Airlines (NYSE:LUV) decreased 3.8%, affected by soaring oil prices. Companies sensitive to high fuel costs experienced sell-offs.

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On Monday morning, oil prices surged about 20%, reaching the highest level since July 2022. The increase was driven by the escalation of the US and Israel’s conflict with Iran, leading some major Middle Eastern oil-producing countries to cut supplies and raising concerns about the potential long-term disruption of shipping through the Strait of Hormuz.

Cruise line stocks also fell sharply, with Carnival Corporation (NYSE:CCL) down 7%, Royal Caribbean (NYSE:RCL) down 6.6%, and Norwegian Cruise Line (NYSE:NCLH) down 6%.

Deutsche Bank warned last Friday that soaring oil prices pose a “survival threat” to airlines. The bank noted that during the 2005 spike in fuel prices, the airline industry suffered severe damage, with Delta and Northwest Airlines forced to file for bankruptcy protection.

Analyst Michael Linenberg stated in a research report: “If the situation does not ease soon, the Iran conflict could force airlines worldwide to ground thousands of aircraft.” Some of the most financially vulnerable airlines may cease operations.

Although American Airlines is largely unaffected by travel disruptions in the Middle East, fuel costs account for up to 30% of its expenses, indicating significant indirect exposure to oil price fluctuations.

Analysts are concerned that if the Middle East conflict persists, oil prices could remain high for some time.

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