[Market Focus] Airline Stocks Tumble Amid U.S.-Iran Conflict... Korean Air Down 7%

Stock prices of airline companies have declined as oil prices are expected to surge due to the U.S. and Israeli airstrikes on Iran and the blockade of the Strait of Hormuz.

As of 9:36 a.m. on March 3, Korean Air was trading at 25,950 won, down 7.65% (2,150 won) from the previous day. Shares of Asiana Airlines (-4.12%), Jeju Air (-4.43%), and T'way Air (-4.86%) also fell compared to the previous day.

The sharp decline in airline stocks is attributed to increased fuel costs resulting from higher oil prices, which have been driven up by the blockade of the Strait of Hormuz, the world's largest oil shipping route. The Strait of Hormuz serves as an export channel for major oil-producing countries such as Saudi Arabia, Iran, Iraq, and the United Arab Emirates.

On March 2 (local time), West Texas Intermediate (WTI) crude closed at $71.23 per barrel, up $4.21 (6.28%) from the previous session. On the same day, Brent crude settled at $77.74 per barrel, rising $4.87 (6.68%).

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