Shares of Camping World Holdings (CWH +5.28%) jumped on Monday, following news of peace talks between the U.S. and Iran.
By the close of trading, Camping World's stock price was up over 13%.
Image source: Getty Images.
Progress toward peace
As the world's largest seller of recreational vehicles (RVs), Camping World is heavily exposed to fuel costs.
Surging gasoline and diesel prices make people think twice about ponying up for a new RV.
Higher fuel costs can also force existing RV owners to scale back on the mileage they put on their vehicles, thereby reducing demand for Camping World's maintenance services.
Unsurprisingly, the travel stock has come under pressure as oil prices have soared amid rising tensions in the Middle East.
NYSE: CWH
Key Data Points
Today, however, was a nice reprieve from the recent downturn. Oil prices pulled back sharply after President Trump said the U.S. and Iran held "productive conversations regarding a complete and total resolution of our hostilities in the Middle East."
Camping World's share price, in turn, rose sharply.
Diesel prices could fall further
The Trump Administration has additional plans to lower fuel costs. During an interview with CNBC, Energy Secretary Chris Wright said the U.S. would take actions to bring more diesel fuel to the market "before too long."
Larger RVs often run on diesel, so lower fuel prices could boost Camping World's sales.
