[Edaily Reporter Kim Yoon-jung] Airline stocks are all trading higher in early trading. This is believed to be due to a decline in international oil prices following U.S. President Donald Trump’s suggestion of an agreement to end the war in the Middle East.

According to MP Doctor on the 13th, as of 9:29 a.m. today, #TwayHoldings is trading at 295 won, up 28 won (10.49%) from the previous trading day.
At the same time, #JinAir was trading at 5,680 won, up 410 won (7.78%); #Jeju Air was at 4,470 won, up 320 won (7.71%); and #Trinity Air was at 795 won, up 55 won (7.43%).
Major airline stocks are also showing strength. #KoreanAir is trading at 26,550 won, up 1,750 won (7.06%), and #Asiana Airlines is trading at 7,080 won, up 260 won (3.81%). In addition, #Air Busan (3.91%) and #Hanjin KAL (2.62%) are also rising.
Airlines are considered prime examples of oil-sensitive stocks. When oil prices fall, airlines’ fuel costs decrease, raising expectations for improved profitability.
The strength in airline stocks today is interpreted as a result of news regarding progress in the U.S.-Iran ceasefire negotiations. CBS News reported on the 11th (local time), citing multiple sources, that the U.S. and Iran are highly likely to sign a Memorandum of Understanding (MOU) regarding the ceasefire as early as next week.
President Trump also stated last night that the peace negotiations with Iran have reached the final stage of document coordination and that a signing ceremony could take place in Europe this weekend. Consequently, expectations for a decline in international oil prices are growing as the possibility of reopening the Strait of Hormuz and lifting the maritime blockade against Iran is being discussed.
Meanwhile, on the New York Mercantile Exchange, July West Texas Intermediate (WTI) crude futures are trading in the $86 range per barrel.