Airline Shares Collapse Amid Iran-US Conflict
Jakarta, CNBC Indonesia — Airline shares led declines across Asian markets on Monday, 2 March 2026, as disruptions to Middle Eastern airspace and airport closures disrupted travel sector operations, whilst rising oil prices boosted energy stocks amid escalating Iran-US conflict.
Singapore Airlines declined over 6%, leading sector losses. All Nippon Airways (ANA) and Japan Airlines (JAL) each fell over 4%, whilst Cathay Pacific Hong Kong dropped 3.63%. Qantas Australia and Eva Air Taiwan also fell over 4% as investors assessed higher fuel costs and operational disruptions.
Oil futures surged following escalation of US-Israel conflict with Iran after the death of Iranian Supreme Leader Ayatollah Ali Khamenei. US President Donald Trump stated on Sunday that military operations in Iran would continue following the deaths of three US military personnel.
Oil futures initially jumped 8% before moderating to approximately 4% gains. West Texas Intermediate (WTI) crude was last traded at US$69.68, whilst Brent crude stood at US$76.13 per barrel. Gold futures surged 2.3% as investors flocked to global safe-haven assets.
Asian energy stocks rose on higher crude oil prices. Woodside Energy in Australia and Inpex in Japan gained up to 5%, whilst China National Offshore Oil Corporation in Hong Kong rose over 3%.
Defence stocks in the region also gained, though more moderately. Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and IHI in Japan each rose 0.47% and over 2% respectively. ST Engineering in Singapore gained 3%. Major Asian defence stocks were not traded on Monday as South Korea’s market closed for a national holiday.
The Japanese Nikkei 225 Index fell 1.25%, moderating prior losses, whilst the Topix declined 1.24%. Hong Kong’s Hang Seng Index fell 1.58%, whilst mainland China’s CSI 300 dropped 0.1%. Australia’s S&P/ASX 200 Index fell 0.22%, with partial losses offset by gains in oil and gold mining sectors.
US stock index futures tumbled in overnight trading following the weekend strikes in Iran. Dow Jones Industrial Average futures fell 517 points, or 1%. S&P 500 futures lost 1% and Nasdaq 100 futures declined slightly over 1%.