Oil Tops $100, Delta Shares Fall 2% to $57.97
Oil prices surged past $100 a barrel after Iranian attacks on two tankers, lifting Brent to $100.52 and WTI to $94.47 and triggering a 2% slide in Delta Air Lines shares to $57.97. A 15% jump in jet fuel costs may add $1.5 billion to Delta’s quarterly fuel expenses.
1. Iranian Tanker Attacks Drive Oil Prices Higher
Attacks on two oil tankers near al-Faw port and the Umm Qasr anchorage in the northern Persian Gulf spooked markets, sending Brent crude up 9.28% to $100.52 a barrel and U.S. West Texas Intermediate up 8.28% to $94.47 in pre-market trading.
2. Delta Shares Slide 2% to $57.97 in Pre-Market
Delta Air Lines stock fell 2% in pre-market trading, sliding to $57.97 per share as the oil spike weighed on airline valuations. Southwest led sector declines with a 2.7% drop, while United and American fell 2.2% and 2%, respectively.
3. Jet Fuel Costs Spike May Add $1.5 Billion to Delta
Jet fuel prices have jumped 15% over the past week, equivalent to roughly $1.75 per gallon. That surge could add about $1.5 billion in quarterly fuel expenses for Delta, with analysts warning that sustained crude above $95 could force 5-10% cuts to Q2 earnings estimates for unhedged carriers.