UAL is trading at $96.31 (+7.86%) in pre-market, rebounding sharply from its previous close of $89.29 as geopolitical tensions ease following an Iran ceasefire agreement.
- Crude oil prices plunged 15% to $95.67 overnight after the reopening of the Strait of Hormuz, significantly reducing fuel cost headwinds for the airline sector.
- The stock is rallying alongside broader markets despite J.P. Morgan slashing 2026 earnings forecasts for UAL from a $13.82 EPS to a $1 loss per share.
- Broader market sentiment has shifted to risk-on following the de-escalation, with the S&P 500 and Nasdaq rising 2.43% and 3.24% respectively.