China Eastern Airlines (stock code: 00670) saw its shares soar by 8.31% during intraday trading on Wednesday, marking a significant rebound for the aviation stock.

The surge comes amid a collective rebound in aviation stocks, driven by easing geopolitical tensions in the Middle East. According to market analysts, recent rapid increases in oil prices, fueled by escalating Middle East tensions and potential disruptions to key shipping routes, had significantly pressured airline stocks due to higher fuel costs. However, reports indicating Iran's willingness to end retaliatory actions have raised hopes for de-escalation, potentially easing the negative sentiment that has been suppressing aviation stocks.

Market observers note that should the Middle East situation improve, the pressure from sustained high oil prices on airline profits is expected to ease. Additionally, anticipated significant increases in fuel surcharges in April could help airlines offset rising operational costs, contributing to the positive market sentiment toward aviation stocks.