from fundamentalist group Hamas left more than 1,000 people dead and pushed the Israeli Cabinet to formally declare a state of war, many major airlines haveThe widescale nature of the action has, in turn, caused many airlines shares to fall rapidly. By Monday afternoon, Delta shares were down more than 5% to $35 while United stock is down 5.56% to $39.50.American Airlines shares also dropped by a similar percentage to $12.11 while Air France stock is down more than 6% to $1.22.
"If the war remains confined between Israel and Palestinians, it's likely that the markets will forget about it after a few days," Raffi Boyadjian, lead investment analyst at XM, wrote in a note to investors. While rates of post-pandemic travel are currently at a high, airline stocks have generally been down this year as airlines struggle to find the staff to meet this demand., a major producer of rockets and other defense weapons, saw its stock rise by more than 10% while missile producer RTX
After floundering over the last few months, oil prices soared back up by nearly 5% to $86 a barrel amid worries that prolonged fighting could ifrom the Middle East. Citadel investment group also sent a note warning its investors that"any expansion of battles will have potential repercussions on oil markets."
"The events in this region are now directly impacting financial markets worldwide, which, as ever in times of increased volatility, is immediately prompting some investors into selling off riskier parts of their portfolios, such as stocks and some currencies," Nigel Green, who heads the London-based financial advisory company deVere Group, said in a statement to investors.