US, European airlines rise amid hopes of Israel-Iran truce

June 24 (Reuters) - Shares of U.S. and European airlines rose on Tuesday amid hopes that a ceasefire between Israel and Iran would hold, easing concerns over further escalation in the Middle East.

Air France KLM AIRF.PA, British Airways owner ICAG.L, Lufthansa LHAG.DE were up between 6% and 10%, while Wizz Air WIZZ.L gained 3.2%.

Amongst the U.S. legacy carriers, United Airlines UAL.O was up 2.7%, while Delta Air Lines DAL.N and American Airlines AAL.O were up about 2% each in premarket trading.

U.S. President Trump on Tuesday said Israel had called off its attack in response to his command to preserve an hours-old ceasefire.

However, Iranian and Israeli media reported new Israeli airstrikes on Iran minutes after Trump made these comments before heading off to The Hague for a NATO summit.

"There had been a relief wave pulsing through the travel sector, amid hopes that grounded flights could take to the skies again, but pessimism has crept back in," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Airlines worldwide cancelled flights to several Middle Eastern destinations, including major international hubs like Dubai and Doha, after several countries temporarily closed their airspace after Iran attacked the Al Udeid U.S. military base in Qatar on Monday.

Qatar and the United Arab Emirates have since reopened their airspace.

“Travel stocks moved higher, both on the implications for fuel costs and as the potential hit to foreign travel appetite that might have resulted from any further escalation of Middle East tensions seems to have been swerved,” said AJ Bell investment director Russ Mould

Oil majors took a hit after crude prices fell to their lowest in two weeks LCOc1. Oil has lost 10% in value in the last week.

European energy stocks .SXEP were down 3%, with BP BP.L and Shell SHEL.L falling around 5% and 4%, respectively, while Norway's Equinor EQNR.OL fell around 7%.

Meanwhile, shares of Exxon XOM.N and Chevron CVX.N were down 1% each in premarket trade.