US airlines surge as oil prices drop on two-week Iran ceasefire announcement

Shares of U.S. airlines jump in premarket trading as crude oil prices slide after the U.S. and Iran agree to a two-week ceasefire

The ceasefire announcement comes after more than a month of fighting that has driven up fuel costs on fears of prolonged supply disruptions

Shares of United Airlines UAL.O up 8.8%, Delta Air Lines DAL.N up 6.8% and American Airlines AAL.O up 7.5%

Southwest Airlines LUV.N up 8.2%, and JetBlue Airways JBLU.O up 7.7%

The global aviation sector has been grappling with higher fuel prices, which have driven up operating costs and squeezed margins, after tensions in the Middle East disrupted the Strait of Hormuz - a key oil shipping corridor

The Dow Jones U.S. airlines sub-index .DJUSAR down 15.7% YTD