Global airline stocks tumbled in premarket trading Friday as Israel's widescale strikes on Iran drove a more than 9% surge in oil prices and prompted carriers to clear out the airspace over Israel, Iran, Iraq and Jordan.
Travel and leisure stocks also fell as Iran's retaliation raised fears of supply disruption at the Strait of Hormuz, a crucial global chokepoint for about a fifth of the world's total oil consumption.
Iran has in the past threatened to close the strait for traffic in retaliation to Western pressure.
"If oil is caught in the crossfire, we anticipate that President Trump will seek OPEC spare barrels to try to keep a lid on prices and shield US consumers from the economic impact of the Middle East conflict," RBC analyst Helima Croft said.
Meanwhile, carriers scrambled to divert and cancel flights to keep passengers and crew safe, Flightradar24 data showed.
Alert: China and Russia Sign New Deal Deepening Alliance Against U.S., See Here
Rising global conflict zones have strained airline profitability as detours drive up fuel costs and extend flight times.
U.S.-based Delta, Latvia's airBaltic, Greece's Aegean Airlines, Ryan Air and Air India are among a long list of carriers that have either canceled or diverted flights from the region.
Shares of European airlines Lufthansa fell almost 5% on the Tradegate platform, while Air France-KLM and EasyJet were down as much as 4%.
Delta Air Lines, American and United slid between 4% and 5% in premarket trading.
Concerns of a prolonged disruption gripped the travel industry too.
Shares of cruise operators such as Norwegian Cruise Line and Carnival Corp, were down between 3% and 4%, while online travel agencies Booking Holdings and Expedia were down about 1.5%.
"All else equal, higher gas prices are a tax on consumers and a cost input for cruise and airline operators, which could hinder spending on all items, including travel," said Dan Wasiolek, analyst at Morningstar Research.
Conflict-driven uncertainties lifted crude prices, boosting shares of U.S. oil majors Exxon Mobil and Chevron more than 3% in premarket trade.
Stocks of top oilfield services companies SLB, Halliburton and Baker Hughes jumped between 4% and 5%.
Shares in European container giant Maersk and Hapag-Lloyd rose 3.5% and 1.2%, respectively. Tankers such as Frontline, Torm and Euronav jumped between 3.9% and 8%.