Carnival's stock fell 5.46% during intraday trading on Tuesday, extending losses from previous sessions as the cruise operator faces headwinds from escalating geopolitical tensions and rising fuel costs.

The decline follows coordinated U.S. and Israeli air strikes on Iran over the weekend, which roiled global markets and sent oil prices sharply higher. The conflict has effectively closed the key Strait of Hormuz shipping route, disrupting travel and pushing up costs for marine and jet fuel—a significant expense for cruise lines.

Beyond the immediate geopolitical concerns, the broader travel sector is facing pressure from rising fuel prices that, if prolonged, could significantly impact profits for cruise companies and airlines. Travel stocks have been among the worst performers as the Middle East conflict escalates.