Airline, Cruise Stocks Surge After Trump Reports 'productive' Iran Talks

Key Takeaways

• Falling oil prices reverberated through markets Monday, helping shares of cruise and airline stocks.
• Consumers, who have seen gas prices climb in recent weeks, may see relief in the coming days, experts said.

Airline and cruise stocks are getting a boost today.

Shares of major domestic carriers like Delta Air Lines (DAL), United Airlines Holdings (UAL), and American Airlines Group (AAL) were up 4%, 6.5%, and 5.5%, respectively, in morning trading after President Donald Trump said before the open that he had instructed the Pentagon to postpone threatened strikes on Iranian power plants after "productive conversations" with the nation.

The news led to a pullback in oil prices, lifting shares of companies that depend heavily on fuel. That meant cruise lines, too; both business list fuel as among their top expenses, along with labor. Carnival (CCL), Royal Caribbean Cruises (RCL), and Norwegian Cruise Line Holdings (NCLH) shares rose 7.5%, 6%, and 8.5%, respectively.

Businesses have been eyeing the price of oil, which today fell back to around $90 per barrel, closely. United Airlines last week in a statement said it was preparing for the possibility of a barrel's price staying in the triple digits until well into next year.

"Honestly, I think there's a good chance it won't be that bad," CEO Scott Kirby said. "But there isn't much downside for us to preparing for that outcome."

Consumers, meanwhile, had been watching gas prices rise at the pump for weeks. Some analysts now think they could turn lower in the coming days. Read Investopedia's full coverage of today's markets here.