Southwest Airlines Co ( LUV ) shares fell in Thursday's premarket session. The decline follows a sharp spike in global energy prices driven by escalating geopolitical conflict.

Brent crude topped $100 per barrel Thursday morning. WTI futures also climbed toward $95. These gains come as persistent concerns over the Iran war overshadow global efforts to stabilize supply, according to Trading Economics.

Geopolitical Tensions Weigh On Sentiment

The U.S.-Iran war enters its thirteenth day with significant regional instability. While President Donald Trump claimed Wednesday that the U.S. has “won” the war, attacks continue.

Energy Secretary Chris Wright announced the Department of Energy will release 172 million barrels from the Strategic Petroleum Reserve next week to curb costs.

Analysts Warn Of ‘World Of Hurt’

Rising fuel costs represent a major headwind for the sector. Veteran trader Peter Brandt recently warned on X, “If Crude Oil does what the chart indicates might be possible, then airlines are headed for a world of hurt.” Jet fuel remains a top variable expense for carriers like Southwest ( LUV ).

Technical Analysis

Southwest ( LUV ) stock is trading 16% below its 20-day simple moving average (SMA) and about 0.2% above its 100-day SMA, a setup that looks like short-term damage inside a still-intact intermediate trend.

Shares are up 39.04% over the past 12 months and sit closer to the middle of the 52-week range than the extremes after pulling back from the February peak.

Key Resistance: $43.50

Key Support: $40.50

The stock carries a Hold Rating with an average price target of $43.33.

Recent analyst moves include:

TD Cowen: Buy (Lowers Target to $55.00) (Mar. 9)

Rothschild & Co: Sell (Raises Target to $35.00) (Mar. 5)

TD Cowen: Upgraded to Buy (Raises Target to $66.00) (Feb. 27)

LUV Stock Price Activity: Southwest Airlines ( LUV ) shares were down 2.21% at $40.75 during premarket trading on Thursday, according to Benzinga Pro data.

Image via Shutterstock