Oil prices rose to a five-month high on Monday, weighing on the stocks of airlines, cruise operators, and other corporations whose funds are directly affected by the value of fuel.

Oil prices jumped greater than 3% at the top of last week after the Treasury Department announced sweeping sanctions against the Russian oil industry, raising concerns about possible disruptions to global supply.

Brent crude, the worldwide benchmark, rose greater than 1% to about $81 a barrel, its highest level since August. West Texas Intermediate, the American benchmark, traded at $78.70 a barrel on Monday afternoon, an almost 3% increase from Friday.

Airlines, for which fuel is a big expense, were feeling the pressure on Monday. Shares of Delta Air Lines (DAL) and United Airlines (UAL) fell over 2%. American Airlines (AAL) slumped greater than 4%. Cruise operators like Carnival (CCL) and Norwegian Cruise Line (NCLH) were also lower, down about 1.6% and 0.6%, respectively.

On the flip side, oil and natural gas producers were among the many S&P 500’s best performers on Monday. Shares of Baker Hughes (BKR) were up nearly 4% and ExxonMobil (XOM) advanced near 3%.

Travel stocks finished the 12 months strong as oil prices trended lower and consumers showed few signs that higher prices have dented robust post-pandemic travel demand. United Airlines was certainly one of the S&P 500’s best-performing stocks in 2024. Its shares have greater than doubled in value previously 12 months. Delta has gained about 69% over the identical period. Royal Caribbean (RCL) stock was little modified Monday but has risen greater than 87% within the last 12 months.

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