SYDNEY – Shares of Cathay Pacific, Qantas, Singapore Airlines, and Japan Airlines each dropped more than 5 percent as investors reacted to airport closures across parts of the Middle East and rising fuel costs. The disruption has stranded tens of thousands of passengers worldwide and forced the cancellation or rerouting of thousands of flights.

Oil prices surged 7 percent to their highest levels in months, adding pressure on airlines already grappling with operational uncertainty. Higher fuel costs typically weigh heavily on carrier margins, prompting a swift market sell-off.

Qantas shares fell as much as 10.4 percent at the open of trading in Australia, hitting their lowest level in 10 months, before trimming losses to trade about 6 percent lower later in the session.
Other regional carriers, including Japan Airlines, Air China, and Malaysia Airlines, also recorded significant declines amid continued volatility in global aviation markets.