Morning Business Report: Markets tumble as Iran tensions rise, airlines cut flights and EV deals grow

Investors are closely watching rising tensions between the U.S. and Iran.

(LILAMAX)- Investors are closely watching rising tensions between the U.S. and Iran after President Donald Trump warned of potential strikes on Iranian power plants if the Strait of Hormuz is not reopened.

Iran responded with threats of its own, saying it could target U.S. infrastructure, military bases, and even financial institutions tied to American government bonds.

Those tensions are already rippling through global markets.

Stocks tumbled in volatile trading Friday following overnight strikes between Iran and Israel. Selling intensified throughout the day as oil prices surged, adding pressure on investors.

The spike in energy costs is also hitting the airline industry.

United Airlines announced it will cut additional unprofitable flights over the next two quarters, preparing for what it expects to be a prolonged period of high fuel prices. CEO Scott Kirby says oil could rise as high as $175 a barrel and remain above $100 through 2027. Jet fuel prices have already nearly doubled since late February.

Meanwhile, gold saw its worst weekly performance since 2011, even though it remains up overall for the year. Analysts say gold prices have recently fallen as oil prices climb, reflecting shifting investor strategies during market uncertainty.

On the consumer front, there may be some relief for car buyers.

Used electric vehicles are expected to become more widely available — and more affordable — as hundreds of thousands of leased EVs hit the market. Data firm Recurrent estimates up to 500,000 vehicles will come off lease in 2026, with nearly double that number expected in 2027.

That influx could help lower prices and expand options for Americans looking for budget-friendly alternatives.