Southwest Airlines (LUV) traded lower as energy markets surged, pushing crude back above the $100-per-barrel level after new geopolitical headlines involving Iran and the Strait of Hormuz. For airlines, abrupt moves in oil quickly translate into higher jet-fuel expectations, which typically pressures near-term margins and earnings sentiment.

Fuel is one of the largest variable costs for carriers, and the market is repricing the risk that jet fuel stays elevated and volatile. That dynamic can compress unit margins, force fare actions that may soften demand, and reduce confidence in full-year profitability targets if higher costs persist longer than expected.

Traders are focused on whether crude and jet fuel continue to rise this week and whether airline management teams signal additional mitigation steps such as capacity adjustments, fare changes, or cost actions. Any incremental updates on Middle East shipping flows through the Strait of Hormuz, as well as broader risk appetite in equities, are likely to remain the key swing factors for LUV in the near term.