Oil prices fell sharply after the United States and Iran announced an initial peace agreement intended to end the conflict and reopen the Strait of Hormuz. Brent crude dropped by more than 4%, while West Texas Intermediate fell by around 5%.

The Strait of Hormuz handles roughly one-fifth of global oil and liquefied natural gas supplies. Traders are removing part of the geopolitical risk premium built into crude prices.

If oil remains lower, airlines, cruise companies and transport businesses may benefit, while oil producers and oilfield service companies could face weaker earnings expectations.

Winners

Airlines

Airlines are among the clearest potential winners because jet fuel is one of their largest operating expenses. A sustained fall in fuel prices could reduce costs, protect margins and impro ...