Both American Airlines and Southwest Airlines have forecasted earnings impacts if fuel prices continue to rise.
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Hunt Energy CEO and Chairman Hunter Hunt warned that the escalating conflict in the Middle East could trigger a “worst‑case” shock to global oil markets, citing traders’ views that prices may rise to $120 a barrel or higher.
At the center of the concern is the Strait of Hormuz, a critical chokepoint through which about one-quarter of the world’s seaborne oil trade flows, affecting industries from aviation to shipping and manufacturing.
Both American Airlines Inc. and Southwest Airlines Co., two of the nation’s largest carriers, have forecasted that rising fuel costs driven by the war in Iran will significantly impact their earnings throughout the rest of the year.
The combination of geopolitical risk, constrained supply and evolving global demand patterns leaves the market in a fragile position — one where outcomes could shift quickly depending on how events unfold.