SpiceJet, Yatra, other travel-related shares gain up to 7% on US-Iran peace deal

Travel-related stocks surged up to 7 percent on Monday after the US and Iran agreed to end their war and reopen the Strait of Hormuz, a development that led to a sharp fall in crude oil prices.

Shares of airline operator SpiceJet jumped 7 percent, emerging as the top gainer as lower fuel prices are expected to reduce operating costs for airlines.

InterGlobe Aviation, the parent of IndiGo, gained 4 percent.

Yatra Online rose more than 5 percent on expectations that easing geopolitical concerns and lower fuel costs could support travel demand.

Shares of Le Travenues Technology, the parent company of Ixigo, advanced 3 percent on optimism over the outlook for the travel and tourism sector.

MakeMyTrip gained over 3 percent, while Easy Trip Planners climbed nearly 2 percent.

The rally in travel-related stocks came after US and Iranian officials said they had reached an agreement to end their war and reopen the Strait of Hormuz, a preliminary pact that sent oil prices lower.

The deal framework marked a major breakthrough in resolving the conflict that disrupted energy markets since it began with joint US-Israeli strikes on Iran in February.

The memorandum of understanding is scheduled to be formally signed in Switzerland on Friday.

US President Donald Trump said the Strait of Hormuz, a key route for global oil and gas supplies that Iran had effectively shut for months, would reopen on Friday and that he had ordered an end to the US blockade of Iranian ports.

Brent crude futures fell 4 percent following the announcement, while Asian equity markets moved higher.