Carnival's stock plummeted 10.84% during Monday's intraday trading session, reflecting a sharp decline for the cruise operator.

The selloff was driven primarily by escalating conflict in the Middle East between the U.S., Israel and Iran, which triggered a surge in oil prices and raised concerns about rising fuel costs for cruise operators. The conflict has effectively closed the critical Strait of Hormuz shipping route, disrupting global trade flows and causing crude oil futures to jump more than 7%.

Investors are anticipating that marine fuel prices will rise sharply, significantly impacting cruise operators' operating costs. The broader travel sector, including airlines and other cruise companies, also faced selling pressure as the geopolitical tensions cast gloom over consumer travel plans and raised fears of itinerary disruptions in sensitive regions.