As the war in Iran and its ripple effects continue to escalate, global crude oil prices surpassed $100 per barrel for the first time since July 2022.
Most major stock futures continue to nosedive as prices across oil-reliant industries spiked.
Gas prices and airfare are seeing the most immediate impact, although the jump in airfare on flights from Asia and the Middle East is also influenced by surging demand as large numbers of travelers remain stranded across the region.
In addition, chaos in the global oil market has caused combined price jumps of as much as 400% on airlines flying between Asia, the Middle East, and Europe.
"Travel demand may be curtailed as costs become prohibitive": analyst
Flights between Seoul and London, as first reported by Reuters from Google Flights data, spiked from $564 at the start of the month to $4,359 as last seen on March 11. Flights on Singapore Airlines have also surged by as much as 200% on flights from Singapore to London and New York.
Some analysts are predicting that, as the closure of the Strait of Hormuz and Iranian strikes on targets across the Middle East continue, oil prices could top $150 per barrel before the end of the month.
"The issue for the ​airlines now is that travel demand may be curtailed as costs become prohibitive for leisure travelers and as some companies start to limit business travel due to the uncertain ​outlook," Lorraine Tan, director of equity research at Morningstar Asia, wrote in an investor note.
Airline heads also warn of airfare price spikes
Last week, United Airlines CEO Scott Kirby was also among the industry insiders who warned that a prolonged conflict will cause significant losses to airlines that they will then have no choice but to pass on to customers through raised ticket prices.
Jet fuel accounts for between 25% and 30% of an airline's total operating expenses, according to IATA data.
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"If it continues we'll feel it in Q2 also," Kirby said at a panel discussion on aviation at the Harvard John A. Paulson School of Engineering and Applied Sciences, adding that the immediate impact on the prices travelers see will "probably start quick."
Other airlines have also warned about the conflict's impact on their operating costs and subsequently airfare prices for travelers.
Hungarian low-cost airline Wizz Air said it expects to see losses of as much as €50 million due to rising fuel prices. Delta Air Lines has estimated that an oil price increase of just one cent per gallon will increase its fuel costs by $40 million per year by the end of 2026.
European and Asian airlines have hedged oil to meet their needs into 2027 but U.S.-based airlines have generally stopped doing this over the last two decades since securing futures contracts can result in losses if prices end up stabilizing earlier than expected.
Shares of all major airlines, as well as aviation ETFs, have been down since the start of March.
Related: United Airlines CEO issues stark warning about ticket prices
This story was originally published by TheStreet on Mar 9, 2026, where it first appeared in the Travel section. Add TheStreet as a Preferred Source by clicking here.
