For example, the largest market player Norwegian Cruise Line Holdings adds about 5%, Viking Holdings adds 4.2%, Carnival Corporation adds 4% and Royal Caribbean Cruises adds 3.3%.
The catalyst was a drop in oil quotations by more than 3% after reports of progress in negotiations between the U.S. and Iran on an agreement that could affect the safety of shipping through the Strait of Hormuz.
According to Investing.com, WTI crude futures fell 3.40% to $90.70 per barrel, while Brent lost 2.68% to $96.91. Pressure on the market was intensified by reports from Iranian state media about a draft agreement with Washington that could reduce tensions in the region.
Analysts note that lower oil prices directly improve the margins of cruise companies, for which fuel remains one of the largest items of expenditure. Norwegian Cruise Line remains the most sensitive to market fluctuations, according to investors’ estimates, which explains its outperformance against the industry background.
Previously, the sector was under pressure due to rising oil prices amid disruptions in shipping through the Strait of Hormuz. Now some of this pressure is being relieved, but analysts warn that the situation remains unstable amid geopolitical uncertainty.
Reuters, citing market participants, notes that hopes for a framework agreement between the U.S. and Iran have increased expectations of risk reduction in the region, although the situation remains sensitive to new political statements and developments.
