Airline stocks recover: IndiGo, SpiceJet soar up to 8% on hopes of US-Iran war ending soon, fall in crude oil prices

Airline stocks InterGlobe Aviation (IndiGo) and SpiceJet recovered on Tuesday, March 10, supported by a sharp drop in crude oil prices and growing optimism that the US-Iran conflict could ease sooner than expected. The fall in oil prices also raised hopes that airline operations could gradually stabilise after recent disruptions.

Crude oil prices dropped nearly 10% in early trade after US President Donald Trump indicated that the war with Iran could end sooner than initially feared and signalled the possibility of easing certain oil-related sanctions.

IndiGo rose as much as 5.6% to day's high of ₹4475.25, while SpiceJet surged 7.7% to ₹14.08 in intra-day deals today.

IndiGo, SpiceJet: What’s behind the share price rebound?

Oil markets reacted sharply to Trump’s comments suggesting the conflict may be shorter than anticipated. He also said the US administration was considering steps to stabilise energy markets, including easing oil-related sanctions and sending the US Navy to escort tankers through the Strait of Hormuz to ensure crude shipments continue smoothly.

Meanwhile, the Group of Seven (G7) countries said on Monday that the bloc is ready to take “necessary measures,” including releasing strategic oil reserves, to support global energy supplies if required.

As a result, Brent crude was trading nearly 6% lower at around $99 per barrel at about 9:15 am IST on Tuesday after falling up to 10% in early deals.

The fall in oil prices provided relief to Indian markets, as rising crude costs can significantly pressure the country’s macroeconomic conditions by increasing import bills and inflation risks.

The decline came after a sharp rally in the previous session, when Brent crude surged to nearly $120 per barrel, its highest level since July 2022, amid fears that the conflict could disrupt global oil supplies.

Speaking to reporters on Monday, Trump said the administration was considering removing oil-related sanctions and suggested the conflict could end sooner than expected, helping calm market fears that had pushed prices sharply higher.

“We’re looking to keep the oil prices down,” Trump said.

In a post on Truth Social, the US president warned Iran of severe consequences if oil shipments through the Strait of Hormuz were disrupted.

“If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far. Additionally, we will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them — But I hope, and pray, that it does not happen!” he said.

IndiGo had also suspended its flights to and from the Middle East after geopolitical tensions escalated last week, following strikes by the United States and Israel on Iran that triggered retaliatory attacks across several countries in the region.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.