Airlines Rally as Oil Slides on Signs of U.S.-Iran Talks

Travel stocks gained as Brent crude tumbled about 8% on Monday after Iran's leadership authorized further talks with Washington. In Europe, Ryanair rose 5.2% and Lufthansa 4.1% as lower fuel costs lifted the outlook for carriers.

Fuel is one of the largest expense lines for airlines such as Delta and American, which had been pressured by last week's tanker attacks near the Strait of Hormuz. Oil rebounded modestly on Tuesday after limited U.S. defensive strikes on Iran's Qeshm Island, a reminder that the situation remains fluid.

President Trump said strikes would not resume after the midterm elections. Investors will watch whether talks hold, since crude remains elevated near $100 a barrel and sharply higher than a year ago.