Airline shares battered as oil prices spike, Iran war intensifies

Surging oil prices and the escalating U.S.-Israeli war with Iran hammered airline stocks in Asia on Monday, piling pressure on carriers already navigating tight airspace as travellers scramble to evade the Middle East conflict.



The war has driven up fuel prices, with oil jumping 20% in early trading on Monday, hitting its highest since July 2022, amid fears of ⁠tighter supply and prolonged disruptions to shipments.



Stranded passengers have been paying huge sums of money to escape the Middle East, with last-minute dashes to the airport, overland trips to less impacted hubs and fighter jets at times escorting passenger planes out.



With most airspace in the region still closed over missile and drone concerns, some people have turned to private jets as charter flights and limited commercial services struggle to evacuate tens of thousands of travellers.



Since February 28, when the U.S.-Israeli war with Iran started, through March 8, more than 37,000 flights to and from the Middle East were cancelled, according to data from Cirium.