Airline stocks declined around the world on Friday after Israel launched airstrikes across Iran, forcing several countries in the Middle East to close their airspace to commercial flights.

Airlines were the worst-performing sector in Europe, with Air France-KLM, Deutsche Lufthansa AG and British Airways parent IAG SA sliding over 3%. Discount carriers Ryanair Holdings Plc, EasyJet Plc and Wizz Air Holdings Plc posted similar declines. In Asia, Japan Airlines Co. dropped 3.7%, while ANA Holdings Inc. fell 2.8%. 

Air Arabia PJSC, the only airline stock trading in the Persian Gulf on Friday, tumbled as much as 10%, the most since the global financial crisis. Turkish Airlines dropped as much as 7% in Istanbul, while low-cost carrier Pegasus fell 6.4%.

In US premarket trading, American Airlines Group Inc., United Airlines Holdings Inc. and Delta Airlines Inc. all fell more than 4%.

Brent crude gained 8.3%, having earlier surged as much as 13% in the biggest intraday jump since March 2022. Higher oil prices are likely to spur concerns around increased jet fuel costs for airlines, which face additional expenses from circumnavigating new airspace closures.

Israel halted flights over its territory after it struck Tehran’s nuclear program and ballistic-missile sites. Iran did the same after ceasing operations at its main airport in Tehran. Iraq and Jordan also closed their airspace.

Carriers have been forced to use narrow flight corridors more often in recent years due to military conflicts around the globe. The detours add to fuel costs, make flights longer and disrupt schedules, leading to higher operational charges. 

The issue has come into focus in recent months after operators were forced to avoid routes near Pakistan and India as the two countries engaged in a short but intense armed conflict. Carriers flying into Russia have canceled and detoured flights as Ukraine expands its drone use near Moscow. 

The Israeli strikes and the prospect of a wider conflict in the Middle East are the latest in a series of headwinds to hit airlines ahead of a key industry trade show in Paris next week. Boeing Co. shares fell as much as 5.9% on Thursday after an Air India 787 Dreamliner bound for London crashed shortly after taking off. Carriers are waiting to see how regulators react to the crash.

This article was generated from an automated news agency feed without modifications to text.