Qantas and Virgin surge as oil plunges 8%

Australian airline shares have jumped sharply after an 8% overnight fall in oil prices dramatically improved the outlook for fuel costs.

Virgin Australia gained more than 7% in early trade, while Qantas climbed around 6%.

Brent crude and West Texas Intermediate fell sharply as markets responded to renewed hopes of negotiations surrounding the conflict with Iran.

Lower crude prices are particularly significant for airlines after jet fuel costs more than doubled during the conflict, forcing carriers to increase fares and reconsider less-profitable routes.

The move worked in reverse for Australian energy producers, with Woodside Energy among the companies falling as oil and gas stocks came under pressure.