India, March 9 -- India's airline stocks took a severe beating on Monday, leading a broader Asian market selloff as surging crude oil prices and an escalating Iran war threaten to cripple airline profit margins.

Shares of InterGlobe Aviation Ltd., the operator of India's largest airline IndiGo, plunged 7.5%, while budget carrier SpiceJet Ltd. dropped 5.6%. Investors are rapidly offloading stocks heavily exposed to volatile crude oil prices, even as the aviation sector braces for extended turbulence.

The sharp selloff on Dalal Street is directly tied to the underlying commodity. Crude prices jumped 20% in early Monday trading-hitting levels not seen since July 2022-driven by fears of tighter global supply and prolonged disruptions to Mid...