Cruise operators are grappling with concerns over escalating fuel costs due to conflicts in the Middle East.

Shares of Norwegian Cruise Line (ASX:NCLH) are down by 3.8%, while Carnival (ASX:CCL) and Royal Caribbean Group (ASX:RCL) have also experienced a decline of 5% and 3.5%, respectively.

The concern stems from an unexpected attack on Israel by Hamas over the last weekend, which heightened fears of an extensive Middle East conflict, causing oil prices to rise by over 2%.

For cruise lines, a spike in crude oil prices could exacerbate already high fuel costs.

Carnival, in September, predicted a larger than anticipated Q4 loss, stating an expected net impact of $130 million from high fuel prices and unfavorable exchange rates this quarter.

However, Norwegian Cruise Line, Carnival and Royal Caribbean have yet to comment on how the Middle East conflict may affect their operations.

According to last close data, CCL’s stocks have raised by ~65%, RCL by ~84%, and NCLH by ~36% YTD, in comparison to a ~34% rise in the S&P 500 hotels, resorts & cruise lines sub index.

Norwegian Cruise Line is a cruise operator that offers worldwide cruise vacations.