Finance
Shares of US, European airlines rise on hopes of Israel-Iran truce
Published by Global Banking & Finance Review®
Posted on June 24, 2025
3 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 24, 2025
3 min readLast updated: January 23, 2026
Airline stocks rose as hopes for an Israel-Iran ceasefire grew, impacting oil prices and travel. Energy stocks fell as oil prices declined.
By Shivansh Tiwary and Rashika Singh
(Reuters) -Shares of U.S. and European airlines rose on Tuesday, while oil prices declined on expectations that a ceasefire between Israel and Iran would hold.
Air France KLM, British Airways owner, Lufthansa were up between 6% and 10%, while Wizz Air gained 3.2%.
U.S. legacy carriers United Airlines, Delta Air Lines and American Airlines were up about 4% each in morning trade. Smaller rivals Alaska Air and JetBlue Airways were also up 3.5% and 6%, respectively.
U.S. President Trump said on Tuesday Israel had called off its attack in response to his command to preserve an hours-old ceasefire.
However, Iranian and Israeli media reported new Israeli air strikes on Iran minutes after Trump made these comments before heading off to The Hague for a NATO summit.
"There had been a relief wave pulsing through the travel sector, amid hopes that grounded flights could take to the skies again, but pessimism has crept back in," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Airlines worldwide cancelled flights to several Middle Eastern destinations, including major international hubs such as Dubai and Doha, as several countries closed their airspace after Iran attacked the Al Udeid U.S. military base in Qatar on Monday.
Qatar and the United Arab Emirates have since reopened their airspace.
"Travel stocks moved higher, both on the implications for fuel costs and as the potential hit to foreign travel appetite that might have resulted from any further escalation of Middle East tensions seems to have been swerved," said AJ Bell investment director Russ Mould.
ENERGY STOCKS TAKE A HIT
Oil majors took a hit after crude prices fell to their lowest in two weeks. Oil has lost 10% in value in the last week.
"Assuming the ceasefire holds, it reinforces our view that de-escalation was more likely than a full blockade of the Strait of Hormuz - a move that would have triggered a sharp spike in oil prices," Mukesh Sahdev, global head of commodity markets at Rystad Energy, said in a note.
"With this in mind, we expect oil prices to hold near the $70 per barrel level while clarity on a US-Iran deal emerges, assuming the ceasefire holds."
European energy stocks dropped 3%, with BP and Shell falling around 5% and 4%, respectively, while Norway's Equinor fell around 7%.
Meanwhile, shares of Exxon and Chevron were down about 1.5% each.
(Reporting by Shivansh Tiwary, Rashika Singh, Samuel Indyk and Anna Pruchnicka, additional reporting by Vallari Srivastava; Editing by Amanda Cooper and Tasim Zahid)
Shares of U.S. and European airlines rose on hopes that a ceasefire between Israel and Iran would hold, leading to a recovery in the travel sector.
Oil prices declined, falling to their lowest in two weeks, as expectations grew that a ceasefire would hold, reducing fears of a blockade in the Strait of Hormuz.
Air France KLM, British Airways owner, and Lufthansa saw gains between 6% and 10%, while U.S. carriers like United Airlines and Delta Air Lines were up about 4% each.
Travel stocks moved higher due to implications for fuel costs and reduced concerns over foreign travel appetite amid escalating Middle East tensions.
There was a wave of relief in the travel sector, but some pessimism crept back in as new reports of Israeli air strikes emerged shortly after the ceasefire was announced.
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