** Shares of U.S. airlines rise in morning trading on lower oil prices

** Oil prices down about 1.5% following the biggest jump in U.S. crude inventories in three years and more progress in U.S.-Iran talks over nuclear dispute

** Brent crude futures .LCOc1 down 95 cents, or 1.3%, at $69.90 a barrel, while WTI futures .CLc1 down $1.06, or 1.6%, at $64.36

** Jet fuel, a refined petroleum product, accounts for a significant share of airlines’ operating costs, and even modest price moves can affect their profitability

** American Airlines AAL.O up 4.4%, United Airlines UAL.O rises 3.4%, Delta Air Lines DAL.N up 2.7%, Southwest Airlines LUV.N up nearly 2%

** Dow Jones U.S. airlines index .DJUSAR up 1.5% on the day

(Reporting by Megavarshini G. Somasundaram in Bengaluru)

((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))