By Katherine Hamilton
Travel-related companies saw their shares rise Wednesday after a White House pool report said U.S. negotiations with Iran are in the "final stages."
Shares of United Airlines and Delta Air Lines were both up 9%, while cruise lines Carnival and Norwegian Cruise Line both gained 8%. Lodging stocks also got a bump, with Airbnb and Marriott International both up 3%.
For the travel industry, the Iran war poses a threat because it is driving up oil prices and could weigh on consumer sentiment about international trips.
Airlines said they have raised fares multiple times since the conflict started to help absorb soaring jet fuel costs. Marriott's chief executive said earlier this month that more travelers are choosing summer road trips instead of flights because of the price increases.
Executives at Carnival and Airbnb have said travel demand among consumers has remained strong despite geopolitical tensions. Still, Airbnb and online travel agency Expedia reported weakness in the Middle East region, as travelers canceled trips to destinations such as Dubai.
While the comments in the pool report sowed hope among investors, they didn't provide certainty about a resolution. The report said the U.S. could resume attacks on Iran if negotiations don't lead to a deal.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
05-20-26 1311ET
