{"id":110287,"date":"2026-03-03T18:03:13","date_gmt":"2026-03-03T21:03:13","guid":{"rendered":"https:\/\/shipping.einnews.com\/article\/897308645"},"modified":"2026-03-03T18:03:13","modified_gmt":"2026-03-03T21:03:13","slug":"luxury-drops-shipping-pops","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/03\/luxury-drops-shipping-pops\/","title":{"rendered":"Luxury drops, shipping pops"},"content":{"rendered":"
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As tensions escalate in the Middle East, markets aren\u2019t moving in lockstep. Instead of a broad selloff or rally, investors are rotating quickly, creating clear leaders and laggards across industries. Let\u2019s take a look at who\u2019s benefiting and who\u2019s feeling the pressure today.<\/p>\n

Champs: Shipping companies<\/h2>\n

Iran has closed the Strait of Hormuz, a vital chokepoint that carries an estimated quarter of both global crude trade and LNG (liquefied natural gas) shipments, disrupting energy flows and worldwide shipping routes.<\/p>\n

For tanker operators, disruption often means higher profits<\/a>, with longer routes and heightened risk boosting freight, insurance, and charter rates. History proves the pattern: Very large crude carrier (VLCC) rates rose over 40% at the start of the first Gulf War and as much as 304% during the second Gulf War, according to Evercore managing director Jonathan Chappell.<\/p>\n

As a result, shares of tanker operators have risen significantly: the Breakwave Tanker Shipping ETF, which tracks crude oil tanker freight futures, is up 230% year to date.<\/p>\n

\u201cThese attacks are different from others and could be longer in duration and more meaningful in magnitude. And, for now, the sentiment and momentum associated with the severity of events, and the resulting uncertainty likely mean the next move is higher,\u201d Chappell wrote in a note yesterday.<\/p>\n

That\u2019s why his team raised price targets on several tanker stocks, namely Ardmore Shipping Corporation, DHT Holdings, Frontline, Scorpio Tankers, and TORM plc. However, he did warn that a shift toward easing tensions could cool rate momentum, forcing these companies to give back their recent gains.<\/p>\n

Chumps: Luxury brands<\/h2>\n

The Middle East is a key market for high-end goods, and prolonged instability can lower consumer confidence, creating headwinds<\/a> for luxury brands. That pressure comes on top of ongoing weakness in China, where many luxury houses are still struggling to return sales growth to positive territory.<\/p>\n

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Making sense of market moves<\/h5>\n

Stay up to date on the latest market news with daily analysis of the investing landscape, served up Brew-style.<\/p>\n<\/div>\n<\/div>\n

\u201cIf people don\u2019t go back to normal, and we have more issues when it comes to sourcing oil and gas from the Gulf, then the probability of a recession globally could be increasing, and that would definitely dampen discretionary sectors like luxury,\u201d Bernstein analyst Luca Solca told CNBC.<\/p>\n

Shares of LVMH fell 2.82%, Kering dropped 6.81%, Burberry declined 2.14%, and Richemont, owner of Cartier, slid 2.84% this afternoon.<\/p>\n

While luxury stocks tumbled, Morningstar analyst Jelena Sokolova said her team is keeping its fair value estimates unchanged. She says companies\u2019 revenue exposure to the Middle East is limited and the disruption is likely temporary, rather than a lasting blow to their fundamentals.<\/p>\n

From tankers to tote bags, the market is diverging for now. But the longer this conflict drags on, the more the economic strain spreads, and today\u2019s winners could find themselves dragged down with everyone else.\u2014SY<\/em><\/p>\n

<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… disrupting energy flows and worldwide shipping<\/span> routes. For tanker operators, disruption … Breakwave Tanker Shipping<\/span> ETF, which tracks crude oil tanker freight<\/span> futures, is … several tanker stocks, namely Ardmore Shipping<\/span> Corporation, DHT Holdings, Frontline, …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-110287","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/110287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=110287"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/110287\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=110287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=110287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=110287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}