Oil price collapse triggers equity rotation from energy to aviation

Aviation and leisure stocks surged as fuel costs dropped and investor sentiment improved. TUI rose 9.86%, easyJet gained 11.11%, and Deutsche Lufthansa climbed 10.27%. This rally followed a collapse in crude prices after US president Donald Trump agreed to suspend bombing and attacking Iran for two weeks, provided Tehran ensures the safe opening of the Strait of Hormuz. Brent crude fell 13.17% to $94.88 per barrel on ICE, while West Texas Intermediate dropped 15.64% to $95.29 on NYMEX. The price drop triggered a sharp reversal in equity trends, with energy stocks falling. Equinor declined 7.69%, BP fell 5.17%, Var Energi lost 7.25%, Repsol dropped 5.76%, Eni fell 5.57%, Galp Energia fell 5.21%, and Shell fell 5.35%.