Core Viewpoint - Delta Air Lines Inc and United Airlines Holdings Inc are experiencing stock declines due to Winter Storm Hernando impacting the East Coast, resulting in significant flight cancellations and delays, alongside rising oil prices and a Supreme Court tariff ruling [1] Group 1: Stock Performance - Delta Air Lines shares are down 4% to $66.63, marking its worst single-day percentage loss since April, with a support level at $65 [2] - United Airlines shares are down 4.9% to $107.54, testing support at its 80-day moving average, and has not yet surpassed its all-time peak of $119.21 [3] Group 2: Historical Performance - Delta Air Lines has seen a 39.4% increase over the last nine months, despite a 3.7% deficit for 2025 [2] - United Airlines has a 44.3% gain over the same nine-month period [3] Group 3: Options Market - Options for both Delta Air Lines and United Airlines are currently affordably priced, with Delta's Schaeffer's Volatility Index (SVI) in the 15th percentile and United's SVI in the 13th percentile [4]

Core Insights - The article highlights that Trump's military action threat against Iran has caused a significant spike in oil prices this week [1] Oil Industry Impact - The threat of military action has led to increased volatility in oil prices, reflecting market sensitivity to geopolitical tensions [1]

Core Viewpoint - ConocoPhillips is positioned to benefit significantly from the recent spike in oil prices due to geopolitical tensions, particularly following Israel's attack on Iran, which has led to a substantial increase in petroleum prices, enhancing the company's earnings and free cash flow [1] Group 1 - The recent escalation in geopolitical tensions has resulted in a spike in petroleum prices [1] - This spike in oil prices is expected to drastically improve ConocoPhillips' earnings and free cash flow [1]

Investment Rating - The report maintains its investment recommendations for the Asia EM Equity Strategy despite recent geopolitical events [2]. Core Insights - The report highlights Asia's vulnerability to oil price spikes, particularly following Israel's military actions against Iran, which have led to a rise in Brent oil prices to US$75 per barrel [2]. - Iran's oil exports, ranging from 1.4 million to 1.7 million barrels per day, predominantly reach Asian markets, exacerbating the region's trade deficits [3]. - Countries most affected by oil price increases relative to GDP include Thailand (7.2%), Korea (4.4%), Taiwan (4.1%), and India (3.1%) [3]. Summary by Sections Oil and Gas Trade Deficits - Thailand has the highest oil and gas trade deficit at 7.2% of GDP, followed by Korea at 4.4%, Taiwan at 4.1%, and India at 3.1% [3]. - The overall commodity trade balance for Asia shows a deficit of 3.5%, with significant variations across countries [3]. Current Account Balance - The current account balance for Thailand is -1.0%, while India shows a more favorable position at 14.7% [3]. - The report indicates that the current account balance is a critical metric for assessing economic stability in the context of rising oil prices [3].