TLDR
- U.S. and Iran agreed to a two-week ceasefire late Tuesday, announced by President Trump
- Brent crude oil fell as much as 16%, settling around $94.30 a barrel
- American Airlines, United, Delta, Southwest, and JetBlue all jumped 4â9% in premarket trading
- The Strait of Hormuz, through which 20% of global fuel supply passes, is set to reopen
- U.S. airlines were projected to spend an extra $11 billion on jet fuel this year due to rising oil prices
Airline stocks jumped sharply in premarket trading on Wednesday after the United States and Iran agreed to a two-week ceasefire, easing fears over oil supply disruptions.
President Donald Trump announced the deal at 6:32 p.m. ET on Tuesday. He said the U.S. would suspend attacks on Iran’s infrastructure for two weeks, provided Iran agreed to fully and immediately reopen the Strait of Hormuz.
BREAKING: President Trump says the US will be "helping with the traffic buildup" in the Strait of Hormuz, Iran can "start reconstruction," and the US will be "loading up with supplies and just 'hanging around' in order to make sure everything goes well."
"This could be the⌠pic.twitter.com/T50afdzwDk
— The Kobeissi Letter (@KobeissiLetter) April 8, 2026
Trump wrote on Truth Social that he received a 10-point proposal from Iran, calling it a “workable basis” for negotiation. He added that “almost all” points of contention had been agreed upon.
Iran’s Foreign Affairs Minister Seyed Abbas Araghchi confirmed on X that Iran planned to cease “defensive operations” on the strait if attacks against the country stopped.
The Strait of Hormuz is one of the world’s most important oil chokepoints. Around 20% of the global fuel supply passes through it, making any disruption a direct hit to airline operating costs.
Brent crude oil fell as much as 16% following the announcement, settling near $94.30 a barrel. That drop provided immediate relief to airlines, which have been under pressure from elevated fuel costs since mid-February.
Airlines Had Been Facing a Fuel Cost Crisis
U.S. airlines were projected to spend an extra $11 billion on jet fuel in 2025 due to the oil price spike. United Airlines CEO Scott Kirby had warned that rising fuel costs could have a “meaningful” impact on first-quarter results.
United Airlines Holdings, Inc., UAL
Delta Air Lines had already raised its checked bag fees for the first time in two years to help offset fuel costs. United Airlines made a similar move around the same time.
How Airline Stocks Moved
American Airlines rose 6.2% in premarket trading. United Airlines climbed 8.7%, Southwest Airlines gained 8.1%, Delta Air Lines added 6.8%, and JetBlue Airways rose 5.9%.
The U.S. Global Jets ETF gained 7.7%, reflecting the broad rally across the sector.
European carriers also rallied. Lufthansa, Wizz Air, Air France-KLM, and easyJet each climbed more than 10% in morning trading.
Airline stocks had been under pressure since mid-February as Middle East tensions pushed oil prices higher and raised concerns about profit margins across the industry.
Delta Air Lines was also scheduled to report its first-quarter earnings later on Wednesday, adding an additional focus for investors watching the sector.
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