European airline stocks rallied significantly on the hope of the Iran conflict ending, which would alleviate flight disruptions and reduce fears of spiking jet fuel costs. Airlines are direct beneficiaries of de-escalation (operations) and lower oil prices (costs). The relief rally is pronounced because the sector was heavily sold off on war risks. The sector is highly sensitive to the evolving geopolitical narrative and oil prices, making it a key barometer for the sustainability of the risk-on move. The Strait of Hormuz does not reopen, keeping jet fuel prices at record highs and extending flight disruptions.