Starfighters Space Inc. ( FJET ) shares dropped nearly 5% in Sunday overnight trading as the aerospace sector grapples with the fallout of intensifying Middle East conflicts and a sharp rise in jet fuel prices.

Fuel Costs Cloud Defense Rally

Despite a massive 16.64% surge during Friday's market session, Starfighters Space ( FJET ) saw its momentum stall as investors shifted focus toward the economic reality of a prolonged U.S.-Iran conflict.

Brent and WTI crude prices have spiked, which initially fueled interest in defense stocks, but may now hinder operational profitability due to surging fuel costs.

Rothschild & Co Redburn recently highlighted this vulnerability within the aviation sector, noting that the Middle East conflict has introduced a major “obstacle for airline carriers, as it could drive jet fuel prices higher,” CNBC reported.

According to analyst James Goodall, the sensitivity is extreme: "Every 10-cent move per gallon [equates] to almost 25% in its earnings per share."

While FJET operates as a high-tech aerospace firm rather than a traditional airline, its reliance on a fleet of Mach 2+ F-104 Starfighters makes it uniquely susceptible to energy price inflation.

Leadership Transition, Market Discovery

The overnight dip also reflects ongoing price discovery following the recent departure of Rick Svetkoff. Svetkoff, who transitioned out of the CEO role on Feb.23, 2026, has been replaced by Tim Franta.

While Franta is a veteran of the space coast with over 20 years of experience, the exit of a visionary founder shortly after a December IPO often creates a “turbulent” environment for shareholders.

Future Outlook Amid Conflict

Despite the overnight 4.88% drop to $7.40, the company remains focused on its STARLAUNCH system.

On Friday, the stock closed 16.64% higher at $7.78 apiece. It was down 33.22% year-to-date and 22.20% over the year.

Benzinga’s Edge Stock Rankings indicate that FJET maintains a weaker price trend over the short, medium, and long terms.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.