Travel and leisure stocks are leading gains on the FTSE 100 today, as a pullback in oil prices improved sentiment after weeks of conflict‑driven volatility in the Middle East. Investors appeared encouraged by a modest retreat in Brent crude, which helped risk assets rally after recent geopolitical shocks had weighed heavily on energy‑sensitive sectors.
Oil prices eased after Israel's Prime Minister Netanyahu said Israel would no longer target Iran’s energy infrastructure, with Brent crude oil down 1.2% at $107.37 a barrel after briefly spiking to $119 on Thursday.
Budget airline easyJet PLC (LSE:EZJ) stood out as one of the biggest gainers, climbing more than 3% in early trade, reducing its losses since the conflict started to 24%. Reports suggest the stock is benefiting from hopes of stabilising jet‑fuel costs after soaring energy prices battered airline valuations in recent weeks.
Hotel and travel names also caught a bid. Intercontinental Hotels Group PLC (LSE:IHG) saw its share price rise more than 3%, reflecting optimism of a broader recovery in travel demand should energy costs remain contained and geopolitical fears ease. Meanwhile, International Consolidated Airlines Group SA (LSE:IAG), owner of British Airways, traded 2.6% higher as market participants bought into a rebound off recent lows that were triggered by conflict‑related sell‑offs and sharply higher fuel expectations.
These leisure and airline stocks have been among the hardest hit by the Middle East conflict, which closed key air corridors and sent jet fuel prices to multi‑month highs, squeezing margins and eroding investor confidence.