Carnival Corp (NYSE:CCL) shares are moving higher on Thursday as cruise stocks benefit from falling oil prices following a new agreement between the United States and Iran to halt their conflict and reopen the Strait of Hormuz.
- Carnival shares are powering higher. Why is CCL stock surging?
U.S., Iran Strike Deal To End Hostilities, Reopen Strait
After more than three months of conflict and a series of stalled diplomatic efforts, the United States and Iran signed a 14-point memorandum of understanding aimed at ending hostilities and reopening the Strait of Hormuz. The deal allows Iranian crude exports to resume immediately, although the most sensitive issue, Iran's nuclear program, will be addressed in a separate 60-day negotiation window.
Under the agreement, the United States will begin lifting its naval blockade at once and fully remove it within 30 days. Iran agreed to permit commercial vessels to pass safely at no cost for 60 days, with shipping lanes expected to return to normal once mine clearing operations are completed. Iranian media reported that 11 Iranian vessels crossed the blockade shortly after the memorandum was signed.
Oil Prices Continue To Ease
West Texas Intermediate slipped about 1.3% to roughly $75 per barrel on Thursday, while Brent traded near $78.66. Crude prices are now down close to 38% from the April peak. The national average for regular gasoline fell to about $3.99 per gallon, dropping below $4 for the first time since late March according to AAA. The International Energy Agency has warned that a supply surplus could develop heading into 2027.
Lower fuel costs directly benefit cruise operators because fuel is one of their largest operating expenses. Softer energy prices improve margin expectations for companies like Carnival and also help support consumer travel demand by boosting discretionary spending power.
Both sides have up to 60 days, with the option to extend by mutual consent, to finalize the deal. President Donald Trump stated that if Iran does not meet its commitments, the United States will resume military action.
Critical Levels To Watch For CCL Stock
Carnival has shifted back into a healthier intermediate trend. The stock trades 11.6% above the 20-day simple moving average, 14.3% above the 50-day simple moving average and 9.2% above the 200-day simple moving average. When price sits above all three levels, it usually signals that buyers have regained control of the trend even if volatility increases around major news events.
The moving average structure is not fully aligned yet. The 20-day average is above the 50-day average, which supports near term strength, but the 50-day average remains below the 200-day average following the death cross that formed in March. This type of split often means the stock can trend higher in the short run, while longer-term traders wait for more confirmation before treating the move as durable.
Momentum indicators lean supportive. MACD is above its signal line and the histogram is positive, which shows that buying pressure is improving compared with the prior pullback. When MACD holds above the signal line, it often reflects a shift where sellers lose influence and buyers begin to push the trend forward.
The next test on the upside is whether Carnival can make another run toward the upper boundary of its 52 week range. The 52 week high sits at $34.03, and the stock last made a swing high in April. On the downside, traders will watch the May swing low as the key level that needs to hold if the stock pulls back after earnings.
- Key Resistance: $33.00 A round number just below the $34.03 high where sellers have stepped in before.
- Key Support: $25.50 A prior demand zone that aligns with the earlier breakdown area and sits well below current price.
CCL Shares Are Climbing
CCL Price Action: Carnival shares were up 3.58% at $30.99 at the time of publication on Thursday, according to Benzinga Pro.
Image: Alison L.Ward/Shutterstock
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