The Islamic Revolutionary Guard Corps declared the Strait of Hormuz closed, halting tanker traffic through the 100-nautical-mile corridor that handles roughly 15% of global oil and 20% of liquefied natural gas shipments. Oil prices rose 6% to about $78 per barrel and diesel jumped 14% on fears of prolonged supply disruptions and potential escalation toward $100 per barrel.

Shares of Delta Air Lines dropped 2.5% as investors priced in higher fuel costs and broader market volatility. Thousands of global flights were canceled after major carriers suspended Gulf transits and war-risk insurance was withdrawn, amplifying operational concerns.

Rising crude and diesel costs will likely boost Delta’s fuel expenses significantly, squeezing profit margins unless existing hedges offset the spike. If elevated energy prices persist, the airline may consider adjusting ticket fares or capacity to protect margins and route profitability.