United Airlines climbed 5%, while JetBlue saw gains of 10% in early trading. Major carriers including Delta and American Airlines also posted significant increases, mirroring a broader rise across the cruise sector. Royal Caribbean, Carnival, and Norwegian Cruise Line each recorded gains between 5% and 6% as the market reacted to the cooling geopolitical tensions.

The breakthrough centers on the reopening of the Strait of Hormuz, scheduled for Friday to allow for necessary mine removal operations. According to Iranian deputy foreign minister Kazem Gharibabadi, the memorandum of understanding is finalized, effectively easing the naval blockade and shipping restrictions that had persisted for months. This de-escalation comes as Brent crude futures dropped 5% to approximately $83 a barrel, offering relief to transportation companies previously squeezed by the threat of sustained fuel price volatility. While broader indices like the Nasdaq-100 and S&P 500 rose, the travel sector significantly outperformed the general market, reflecting a clear investor pivot away from war-risk hedging.