Sri Lanka, March 9 -- Airline stocks were hammered on Monday, while airfares soared as the U.S.-Israeli war with Iran sent oil prices surging, sparking fears of a deep travel slump and the potential for the widespread grounding of planes.

Oil prices were trading more than 15 per cent higher at levels not seen since 2022 - as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market. At one point, Brent crude futures jumped as much as 29 per cent.

That promises to pile pressure on carriers already navigating tight airspace as travellers scramble to evade the Middle East conflict.

In Asia, airlines bearing the brunt of investor fears included Korean Air Lines which tumbled 8.6 per cent, Air New Zeal...