- Interglobe Aviation and SpiceJet shares surged on June 12 after Brent crude fell to $86 a barrel
- US President Trump hinted at a possible peace deal with Iran easing geopolitical tensions
- IndiGo shares rose 3.88% intraday to Rs 4,677 per share on the day of the update
Shares of Indigo's parent, Interglobe Aviation and SpiceJet surged on Friday, June 12 after global crude oil prices fell below $90 a barrel. This comes after US President Donald Trump hinted at a possible peace deal with Iran, easing geopolitical tensions and inflation concerns.
IndiGo shares advanced 3.88% intraday to Rs 4,677 apiece, while SpiceJet rose 6.95% to Rs 12.19 per share. These shares were trading 3.47% and 4.6% higher by 10:07 am, while the benchmark BSE Sensex was up 0.80%.
On Friday, oil prices dropped after US President Donald Trump said a peace agreement with Iran could be signed as soon as this weekend, raising hopes that disruptions to Middle Eastern energy supplies may ease. Brent crude fell to $88 a barrel after ending the previous session at a two-month low. US benchmark West Texas Intermediate traded near $85 a barrel.
The current dip in global crude oil prices came as Trump halted fresh military action against Iran and indicating a possible diplomatic breakthrough. Speaking at the White House, Trump said a deal could be signed in Europe as early as this weekend and claimed Iran's leadership had agreed to its broad contours, though he acknowledged that negotiations were not yet complete.
The Middle conflict has remained a key concern for the aviation industry, with soaring aviation turbine fuel (ATF) prices and airspace closures disrupting travel schedules. ATF typically accounts for about 40% of airline operating expenses and can rise to as much as 60% during periods of sharp volatility.
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