The cooling of oil prices, which saw Brent drop to $93.96 and West Texas Intermediate to $87.23 a barrel during Thursday morning trading, provided immediate relief for airline margins. Singapore Airlines and Cathay Pacific climbed 3.2% and 2.2% respectively, while Japan Airlines outperformed with a 6.2% gain. Carriers in Hong Kong saw even steeper interest, as China Eastern, China Southern, and Air China surged between 5.1% and 7.4%.

This optimism stems from a reassessment of the geopolitical risk premium, according to analysts at DBS and MUFG. Philip Wee and Lloyd Chan pointed to the U.S. midterm election outcome as a catalyst for market relief, suggesting that a shift in the political landscape may constrain fiscal expansion and lower the probability of prolonged conflict involving Iran. While the energy sector faced significant pressure—with PetroChina, Cnooc, and Sinopec dropping between 3.3% and 7.9%—the shipping industry also absorbed heavy losses. Mitsui O.S.K. Lines fell 8.9% in Tokyo, and Malaysia’s Hengyuan Refining plummeted 14% as the market priced in a new reality for fuel-dependent industries.