Shares of major U.S. airlines moved sharply higher on Monday as crude oil prices declined after President Donald Trump announced that planned strikes on Iranian energy facilities would be delayed by five days.
In pre-market trading, American Airlines (NASDAQ:AAL) rose 4.3%, while United Airlines (NASDAQ:UAL) gained 3.9%. Delta Air Lines (NYSE:DAL) advanced 3.6%, JetBlue (NASDAQ:JBLU) climbed 3.2%, and Southwest Airlines (NYSE:LUV) increased 3.8% shortly before 8 a.m. on Monday.
Trump said in a Truth Social post early Monday that he had instructed the Department of War to postpone the strikes following discussions between the United States and Iran over the past two days.
“I am pleased to report that the United States of America, and the country of Iran, have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” Trump wrote. “Based on the tenor and tone of these in depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings and discussions.”
Oil prices reacted immediately to the announcement, falling from above $98 per barrel to below $85 within minutes. Prices later recovered some losses and were trading above $92, still about 6.6% lower on the day.
On Saturday, Trump had warned that the United States would target Iran’s power plants if Tehran failed to fully reopen the Strait of Hormuz within 48 hours. The threat came just one day after he spoke about winding down the conflict, which has now entered its fourth week.