Shares of cruise operators such as Norwegian Cruise Line Holdings (ASX:NCLH) have taken a hit, with almost a 5% decrease.

Similarly, Carnival (ASX:CCL) is down by 7%, with Royal Caribbean (ASX:RCL) not far behind at a 4% dip.

This slump is attributed to an over 2% hike in oil prices following an unexpected attack on Israel by Palestinian group Hamas.

This rising unease has led to speculation regarding a more extensive conflict in the Middle East.

An escalation in crude oil prices may exacerbate the already sharp fuel costs for cruise line operators.

In September, Carnival projected a higher than anticipated Q4 loss and anticipated $130 million impact due to skyrocketing fuel costs and unfavorable currency exchange rates.

Royal Caribbean is monitoring the situation in Israel closely, and for the sake of guest’s security and safety, they are adjusting several itineraries.

However, it’s unclear how Norwegian Cruise Line and Carnival will respond to the conflict as it could potentially affect their operations.

Year-to-date, Carnival is up approximately 65%, Royal Caribbean up about 84% and Norwegian Cruise Line Holdings up around 36% relative to a 34% surge in the S&P 500 hotels, resorts & cruise lines sub index.

Norwegian Cruise Line Holdings is a global cruise company operating the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands.