Airline shares battered, airfares surge as Iran war pushes oil above US$100
BNN Bloomberg
Airline stocks were hammered on Monday, while airfares soared as the U.S.-Israeli war on Iran sent oil prices surging, sparking fears of a deep travel slump and the potential for the widespread grounding of planes.
Oil prices jumped 15 per cent to above US$105 a barrel, hitting levels not seen since 2022 as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market. At one point, Brent crude futures jumped as much as 29 per cent.
Some jet fuel prices have doubled since the start of the conflict, piling pressure on carriers already navigating tight airspace as pilots reroute to avoid the Middle East conflict and thousands of stranded passengers try to leave the region.
“Absent near-term relief, airlines around the world could be forced to ground thousands of aircraft while some of the industry’s financially weakest carriers could halt operations,” Deutsche analysts said in a note to clients.
In Asia, airline shares tumbled, with the worst-hit, including Korean Air Lines 003490.KS, which slid 8.6%, Air New Zealand AIR.NZ down 7.8% and Hong Kong’s Cathay Pacific 0293.HK which dropped 5%.
In Europe, Air France KLM AIRF.PA, British Airways-owner IAG ICAG.L, Wizz Air WIZZ.L and Lufthansa LHAG.DE fell between 2.5% and 6% in morning trade.
Representatives from Beijing and Washington began their economic and trade talks in Paris on Sunday, Chinese official news agency Xinhua reported.
The impact of the Iran war on fuel prices in Canada may encourage more drivers to go electric, some experts say, but others warn the conflict will drive up prices of "pretty much everything."
The U.S. is temporarily easing some sanctions on Russian oil shipments, reflecting global concerns over sharply higher crude prices due to supply shortages stemming from the Iran war.
The Trump administration this week stepped up its ambitious effort to replace about US$1.6 trillion in lost tariff revenue that was eliminated by the U.S. Supreme Court’s decision to strike down a range of the president’s import taxes.
The Bank of Canada will be balancing a last-minute flood of economic data with uncertainty around trade and war in the Middle East as it prepares to make its second interest rate decision of 2026 this week.
The Trump administration has expanded its trade investigations to 60 countries, including Canada, in an effort to shore up the president’s tariff policies.
Canada has committed to supplying 23.6 million barrels of oil as part of a larger International Energy Agency plan to help stabilize energy markets as the war in the Middle East continues.
Canada’s energy-heavy index may cushion stocks from oil shocks, but rising crude prices could boost inflation and pressure consumers.
Venture Global will proceed with phase 2 of its CP2 liquefied natural gas project in Louisiana, the company said on Friday.
The U.S. is temporarily easing some sanctions on Russian oil shipments, reflecting global concerns over sharply higher crude prices due to supply shortages stemming from the Iran war.
Telus Corp.’s global IT and customer services arm says it’s investigating a breach of its systems.
When Jensen Huang strides onto the stage of a packed hockey arena to kick off Nvidia’s annual developer conference on Monday, he is likely to reveal products and partnerships geared toward keeping the AI chipmaker atop a growing array of competitors.