How much did oil prices jump due to the conflict?

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Oil Prices Surged Up To 13 Per Cent Amidst Escalating Middle East Conflict

Oil prices experienced a significant surge, climbing as much as 13 per cent to reach their highest point since January 2025. This sharp increase in oil prices is a direct consequence of escalating attacks between Iran and Israel, which have heightened concerns over potential supply disruptions.
Disruption to Strait of Hormuz Traffic

The conflict has severely impacted crucial shipping lanes, particularly the Strait of Hormuz. On March 1, the number of oil tankers transiting the Strait plummeted to just five, a stark contrast to the approximately 60 tankers that typically pass through daily under normal circumstances. This dramatic reduction in traffic underscores the severity of the disruption to global oil flow.
Broader Market Impact on Travel Stocks

The escalating tensions have also had a profound effect on the travel industry. Travel shares experienced a substantial decline, with a group of 29 leading airlines, hotel, and travel companies from Europe, Asia, and North America collectively losing US$22.6 billion (RM88.7 billion) in market value. Companies like TUI, Lufthansa, and IAG saw their share prices fall significantly, reflecting the widespread uncertainty and operational challenges faced by the sector.
Airline Operations and Passenger Stranding

Major Gulf aviation hubs, including Dubai International Airport, the world's busiest international airport, remained closed for an extended period. This led to the stranding of tens of thousands of passengers globally, presenting aviation with one of its most significant challenges since the Covid-19 pandemic. Several countries in the region, such as Jordan, also partially closed their airspace, further compounding travel disruptions.
Potential for Increased Fuel Costs and Earnings Impact

The surge in oil prices raises the prospect of higher fuel costs for airlines, which could impact their financial performance. Analysts have indicated that even a modest increase in fuel costs could significantly lower earnings for major carriers. For instance, a 5 per cent uptick in fuel costs could reduce the 2026 earnings of Delta and United by 5 per cent to 10 per cent, while American Airlines' profit could see a substantial plunge of approximately 35 per cent.

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How much did oil prices jump due to the conflict?

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