As military tensions in the Middle East flared again and pushed international oil prices sharply higher, airline stocks were broadly lower early on the 9th. Concerns that rising oil prices will increase airlines' fuel costs are dragging down share prices.
According to the Korea Exchange (KRX), as of 9:30 a.m., Asiana Airlines was trading at 7,290 won on the main board, down 260 won (3.44%) from the previous session.
Other airline stocks were also weak. Trinity Airways fell 2.35%, Korean Air Lines 1.42%, and Jin Air 0.56%.
Airlines are regarded as a representative oil price–sensitive sector. When international oil prices rise, jet fuel becomes more expensive, increasing fuel costs and raising concerns that profitability could deteriorate.
International oil prices surged as military clashes between the United States and Iran reignited. The United States carried out airstrikes on military facilities in Iran in retaliation for attacks on merchant ships transiting the Strait of Hormuz, and Iran responded with missile and drone attacks targeting U.S. bases in the Middle East, ratcheting up tensions again.
As a result, on the New York Mercantile Exchange overnight, West Texas Intermediate (WTI) crude for August delivery settled at $73.52 per barrel, up 4.37% from the previous session, while September Brent rose 5.20% to $78.02. Both were the highest since late June.