An official statement from Iran and D. Trump about opening the Strait of Hormuz is triggering a collapse in oil prices and a spectacular return of risk appetite. Among the biggest beneficiaries are European airlines.
The President of the International Energy Agency warned just a few days ago that Europe has only about six weeks’ worth of jet fuel запас, and some carriers have started cutting routes, for example, Lufthansa.
Breakthrough declarations from representatives of Iran and the U.S. regarding the conflict in the Strait of Hormuz, which had been pressuring airline valuations, especially in Europe, have flipped sentiment by 180 degrees. Shares are rising in a range from 5% to almost 10%, attempting to recover recent losses.
AF.FR (D1)
Despite the strong gains, all major European airlines still remain well below the levels seen before the war. It is worth remembering that most of these companies were already struggling with a long and persistent downtrend even before the war. On average, valuations remain several percent below early-February levels. Source: xStation5
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⬇️WTI Oil declines nearly 9%