Shares of Hertz and Saia fell sharply after President Trump declared the Iran ceasefire over and vowed renewed strikes, reversing fuel relief and sending oil back above $75. Hertz dropped 6.9% while Saia fell 2.8%, as transportation stocks are highly sensitive to fuel costs, which are typically their second-largest expense behind labor. The roughly 7% jump in crude prices flows almost directly into operating margins within the same quarter. Hertz has been under additional pressure after cutting its second-quarter profit forecast and announcing plans to raise $100 million in stock and $300 million in notes, with analysts at J.P. Morgan reiterating sell ratings on the stock.
Hertz Global Holdings IncOil price surge from renewed Iran strikes raises fuel costs, a major expense for Hertz.
Saia IncOil price jump increases fuel costs, directly pressuring Saia's operating margins.