Core Insights - Airlines and large fuel buyers are increasing their oil derivatives contracts to manage costs as the US-Iran conflict drives oil prices to multi-year highs [1][2] - The demand for hedging has risen since the conflict began, with a notable increase in call option volumes as companies seek to protect against rising jet fuel prices [2][6] - Brent crude prices surged approximately 12% in three days, exceeding $80 per barrel due to concerns over potential disruptions in the Strait of Hormuz [2][3] Industry Trends - The geopolitical tensions have heightened concerns among consumers regarding further increases in oil prices, which represent a significant expense for airlines [3] - Airlines are restructuring their hedging strategies, with Air New Zealand shifting from Brent-linked contracts to jet fuel swaps for better protection against price surges [5] - Gasoil call option volumes have reached their highest levels in over two decades, indicating a significant uptick in consumer hedging activity [6]