TORONTO — The spiking cost of oil following this weekend’s intensified conflict in the Middle East hit share prices for airlines and cruise lines hard, and could send airfares soaring.

Stock markets shuddered worldwide Monday on worries about whether the global economy can withstand higher prices for oil, which briefly got to nearly $120 per barrel, their highest level since four summers ago.

Carnival Corporation lost 7.3%. United Airlines was down 6.9%. As Reuters noted, in Asia, Korean Air Lines was down 8.6%, Air New Zealand was down 7.8% and Cathay Pacific lost 5%, while in Europe, Air France-KLM, BA owner IAG and Lufthansa were all down 4-6%.

Fuel is the airline industry’s second-highest expense, after labour. As noted in coverage by Reuters, a worst-case scenario for airlines unable to keep up with fuel costs could see grounded aircraft, or bankruptcy for weaker players. The news service cited Google Flights data that showed a March 11 Seoul-London airfare with Korean Air Lines that hit US$4,359, up from $564 a week earlier.

With file from The Associated Press

Lead image caption: Bobby Charmak works on the floor at the New York Stock Exchange in New York, March 6, 2026 (AP Photo/Seth Wenig)