The Iran war is shaking up investors, and it’s had wide range of impacts on global markets.
Oil prices have spiked, up 22% from the end of last week, and defense and shipping stocks have surged as well, as shippers have benefited from higher rates due to the closing of the Strait of Hormuz.
However, rising oil prices have created a number of losers as several sectors are sensitive to oil prices. Asian stocks have plummeted as markets like Korea and Japan depend on oil and gas from the Middle East.
Travel is another sector that has gotten hammered. Fuel accounts for a significant share of travel companies’ budgets, including airlines and cruise lines, and it also creates geopolitical risk as airspace has been disrupted, and people typically don’t want to travel to war zones. Travelers in Dubai and other Gulf destinations are struggling to find flights out.
Here are two travel stocks that are falling on the news.
Image source: Getty Images.
1. Carnival
Carnival (CCL 3.19%) is the world’s biggest cruise line, so it would seem to have the most at risk from rising oil prices and geopolitical disruption.
Carnival operates some sailings out of Dubai, but it cut the season short due to the outbreak of the war. It also cancelled port calls at Puerto Vallarta in Mexico.
Carnival Corp.
Today’s Change
(-3.19%) $-0.90
Current Price
$27.11
The stock is down 15% since the market close last Friday due to the expected impact on its business. Carnival has put together an impressive comeback since the pandemic, but cruise lines remain at risk from global events like wars and natural disasters.
Carnival hasn’t commented on the impact of the war, but we should get an update in its earnings report due out on March 19. Carnival’s cruises are concentrated in the Caribbean, so most of its sailings won’t be disrupted, but the price of oil could put a dent in its profits. Fuel typically makes up 10%-15% of Carnival’s revenue.
2. American Airlines
Like cruise lines, airlines have gotten hit hard by the rise in oil prices, and those who fly to destinations in the Middle East, like Dubai, have had to cancel flights.
American Airlines (AAL 5.42%) stock is down 11% since last Friday, as the airline was struggling even before the war broke out. Profits fell 87% at the company in 2025, and flight attendant and pilot unions have voted no confidence in management.
American Airlines Group
Today’s Change
(-5.42%) $-0.68
Current Price
$11.79
Rising fuel prices are likely to eat further into their profits, and it has suspended its flights to Dubai, though that may be a short-term disruption.
Fuel and related taxes made up nearly 20% of American’s revenue in 2025 so keep your eye on oil prices as that’s likely to inform where shares of American and its airline peers go from here.
