Travel companies led the falls among FTSE 350 stocks on Tuesday as oil prices climbed to their highest level in more than a month following fresh US military action against Iran.
Holiday Inn owner Intercontinental Hotels Group PLC (LSE:IHG) was among the biggest fallers, dropping 3.8% to £157.50. British Airways owner International Consolidated Airlines Group SA (LSE:IAG) lost 2.4% to 449.4p.
Package holiday operator Jet2 PLC (AIM:JET2) fell 3% to 1,445p and budget airline Wizz Air Holdings PLC (AIM:WIZZ) declined 2.4% to 1,097p.
Premier Inn owner Whitbread PLC (LSE:WTB) shed 1.7% to 2,260p, while aircraft engine maker Rolls-Royce Holdings PLC (LSE:RR.) fell 2.2% to 1,385p.
The selling came after US Central Command confirmed that a third consecutive night of strikes on Iran had been carried out.
It came a day after President Donald Trump announced a renewed blockade of Iranian shipping and proposed a 20% fee on cargo using the Strait of Hormuz, a vital route for global energy supplies.
Iran rejected the move, while the UAE said Iranian missiles had struck two oil tankers transiting the Omani shipping lane through the waterway.
Brent crude surged 9.6% on Monday and added a further 3.3% on Tuesday to trade at over $86 a barrel.
Higher oil prices typically weigh on airline and travel stocks because fuel is one of their highest operating costs. Hotel operators can also come under pressure as investors worry that higher energy prices could weaken consumer spending and curb demand for travel.
