Surging oil prices and the escalating US-Israeli war with Iran have hammered airline stocks in Asia, piling pressure on carriers already navigating tight airspace as travellers scramble to evade the Middle East conflict, Reuters reports.

The war has driven up fuel prices, with oil jumping 20pc in early trading today, hitting its highest since July 2022, amid fears of tighter supply and prolonged disruptions to shipments.

Since February 28 through March 8, more than 37,000 flights to and from the Middle East were cancelled, according to data from Cirium.

Shares in Australia’s Qantas Airways, Air New Zealand, Hong Kong’s Cathay Pacific, Japan Airlines, Korean Air Lines and major Chinese airlines China Southern and China Eastern all fell between 4pc and more than 10pc today.

Shares of Indian carriers IndiGo and SpiceJet dropped 7.5pc and 5.6pc, respectively.

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