Although on Tuesday Reeves, in contrast, stressed that the red lines set out in Labour’s manifesto still stand, the chancellor has now clearly signalled a shift. She indicated in her Mais lecture that, wherever it was in Britain’s interest to do so, the government wants to align the UK’s regulatory regime with that of the EU in more areas.

NEW YORK — Hertz Global Holdings Inc. shares rose 4.44% in midday trading on April 20, 2026, climbing 33 cents to $7.76 as investors weighed early signs of operational improvement against persistent challenges in the car rental giant’s path to sustainable profitability.

The stock has staged a sharp recovery in recent weeks, more than doubling from March lows near $3.78 after a brutal 2025 marked by heavy losses, fleet management issues and a challenging used-car market. Monday’s gain extended momentum from last week’s 6.45% surge to $7.43 on April 17, fueled by reports of rising rental demand and management’s outline of a steadier recovery trajectory for 2026.

Hertz (NASDAQ: HTZ) has been navigating a difficult turnaround since emerging from bankruptcy in 2021. The company continues to grapple with high vehicle depreciation costs, fleet age imbalances and pressure on pricing, but executives have pointed to positive shifts in travel behavior and internal efficiencies that could support cash-flow neutrality later this year.

In late March, Hertz reported a 15% spike in traffic to Hertz.com as airport security delays and longer Transportation Security Administration lines prompted more travelers to consider road trips or alternative plans. The company highlighted growing interest in off-airport rentals and longer-term bookings, trends that could help diversify revenue away from volatile airport demand.

“We’re seeing structural revenue gains from our commercial strategy,” Hertz said in its February update following fourth-quarter results. Management projected mid-single-digit revenue growth for the first quarter and expressed confidence in returning to profitability in the second quarter of 2026. The company also targeted year-end liquidity “well north of $1 billion” through a mix of financing and operational improvements.

Depreciation expense remains a critical variable. Hertz expects per-unit depreciation to fall below $300 in 2026 as used-car values stabilize and the fleet grows younger through strategic purchases and sales. A younger fleet typically translates to lower maintenance costs and stronger resale values, two levers that directly impact profitability per vehicle.

Analysts remain divided on whether the recent rally signals a genuine rebound or another false start for the heavily shorted name. Consensus price targets hover around $4.33 to $5.00, implying significant downside from current levels, with most firms maintaining Hold or Sell ratings. Morgan Stanley trimmed its target to $5.00 in early April, citing weaker-than-expected guidance and execution risks.

Yet some market participants see value in the discounted valuation. Hertz trades at a fraction of its pre-pandemic levels, with a market capitalization near $2.4 billion. Bullish voices point to potential catalysts including summer travel season strength, off-airport expansion and disciplined cost controls under new leadership.

The company plans to report first-quarter 2026 results on May 7, with a conference call scheduled for 9 a.m. ET. Investors will scrutinize revenue trends, fleet utilization rates, per-unit economics and any updates on liquidity and capital structure. Early indications suggest January revenue performed in line with expectations, providing a foundation for the mid-single-digit growth outlook.

Hertz has taken concrete steps to stabilize operations. The company has focused on tightening unit costs, optimizing fleet mix and expanding beyond traditional airport counters. Road-trip demand and longer rental durations have helped offset some weakness in corporate travel, while partnerships and technology investments aim to improve customer experience and pricing power.

Still, risks loom large. The rental car industry faces cyclical pressures from fluctuating vehicle supply, interest rates and consumer spending. Hertz carries substantial debt and must manage a large fleet amid volatile resale markets. Any resurgence in used-car price declines could reignite depreciation headwinds and pressure margins.

Short interest has remained elevated, creating potential for volatility on both upside and downside moves. Recent trading sessions have shown above-average volume and call option activity, reflecting speculative interest in a possible short squeeze or momentum continuation.

Bill Ackman’s Pershing Square disclosed a new position in Hertz earlier in 2026 as part of a broader portfolio shift, adding another layer of intrigue for investors tracking activist involvement. While the exact stake size and intentions remain closely watched, the high-profile investment signaled some confidence in undervalued assets within the travel sector.

Broader market context on Monday included mixed sentiment amid geopolitical tensions and rising oil prices, which could eventually filter into higher fuel costs for renters or affect travel demand. Hertz shares have shown resilience relative to some peers, however, as the company positions itself for a more balanced 2026.

Looking ahead, key metrics for the remainder of the year include achieving cash-flow neutrality after March, sustaining revenue growth and demonstrating consistent execution on fleet management. Success on these fronts could rebuild investor trust and support further stock appreciation, while setbacks might trigger renewed selling.

For retail investors, Hertz represents a classic high-risk, high-reward story common in post-bankruptcy recoveries. The stock’s volatility — swinging from under $4 to near $8 in recent months — underscores the binary nature of the bet: either operational improvements take hold and drive a multi-year rebound, or structural challenges persist and weigh on the share price.

Company officials have emphasized a transformation focused on structural revenue gains rather than short-term fixes. Initiatives include modernizing the customer-facing platform, expanding off-airport locations and leveraging data analytics for better pricing and inventory management. These efforts aim to create more predictable earnings power in an inherently cyclical business.

As Hertz prepares for its May earnings release, the market will look for concrete evidence that 2026 guidance remains on track. Positive surprises on utilization, pricing stability or liquidity could accelerate the current rebound, while any downward revisions might cool enthusiasm quickly.

The car rental sector as a whole has faced headwinds since the pandemic-driven fleet shortages and subsequent oversupply cycles. Hertz, once the largest player by fleet size, has worked to right-size operations while competitors like Avis Budget Group navigate similar dynamics.

Analysts at firms such as Barclays and Goldman Sachs have maintained cautious stances, citing execution risks and industry-wide pressures. Yet the stock’s recent strength suggests some investors are willing to look past near-term noise toward longer-term recovery potential.

Monday’s 4.44% advance to $7.76 came on solid volume, continuing a pattern of bullish option flow and call volume noted by market observers in recent sessions. Whether this momentum sustains into earnings season will depend heavily on management’s ability to articulate credible progress on the 2026 recovery plan.

Hertz Global Holdings occupies a unique place in American travel history, but its financial future hinges on navigating a complex mix of macroeconomic factors, fleet economics and competitive pressures. For now, the stock sits at the intersection of risk and rebound potential — offering substantial upside for believers in the turnaround while carrying clear downside dangers for those skeptical of near-term execution.

As trading continued Monday morning, the modest gain reflected cautious optimism rather than unchecked euphoria. With earnings less than three weeks away, Hertz investors are betting on data points that could finally validate — or undermine — the narrative of brighter days ahead in 2026.

Rising tensions in the Middle East are spilling into domestic energy policy debates as lawmakers weigh how global conflict is hitting Americans at the pump. With oil markets reacting to instability around the Strait of Hormuz, concerns over supply disruptions are now colliding with questions about whether U.S. energy policy serves domestic consumers first.

Rep. Ro Khanna, D-Calif., joined FOX Business’ Maria Bartiromo on “Mornings with Maria” to argue that the current crisis underscores what he sees as a fundamental policy flaw: continuing to export U.S. oil while prices rise at home.

When Bartiromo pointed to his legislation aimed at stopping U.S. oil exports during the Iran conflict and pressed him on why he supported that move, Khanna framed the issue as prioritizing domestic supply.

“Maria, it’s common sense. Why would we be sending our oil overseas when Americans are getting fleeced at the pump… We should have our oil supply for Americans… That would bring down the price,” Khanna said.

TRUMP: ENERGY SECRETARY WRIGHT ‘TOTALLY WRONG’ ON DELAYED RETURN TO $3 GAS

The debate comes as oil flows through one of the world’s most critical shipping lanes face disruptions, amplifying price volatility and renewing scrutiny over U.S. export policy first loosened nearly a decade ago. Critics argue exports strengthen global energy influence, while others say they disconnect domestic production from consumer relief.

Bartiromo pushed back, noting that the U.S. has been producing oil at high levels and questioning whether restricting exports would address the broader energy picture.

“This was a giveaway in 2015 to the big oil companies… It was good for them… Not good for the average consumer,” Khanna added.

OIL PRICES PLUNGE AFTER IRAN SAYS STRAIT OF HORMUZ OPEN FOR COMMERCIAL SHIPPING TRAFFIC

The exchange reflects a broader divide over energy policy as global supply disruptions put pressure on prices while policymakers debate whether exports strengthen U.S. influence abroad or limit relief at home.

Bartiromo also pressed Khanna on the broader strategy toward Iran, questioning how diplomacy would prevent the country from developing a nuclear weapon and whether Tehran could be trusted. 

“The American people are tired of it. They want people who are going to be team America. They want to bring gas prices down here and care about our nation and get us out of these wars,” he said.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Oil prices have surged sharply in recent days, with some analysts warning that Brent crude could climb to $150 per barrel if the Strait of Hormuz remains closed for a prolonged period amid the escalating Iran–Israel conflict. After a sharp selloff last week, Indian equities may face further valuation pressure in the near term due to heightened volatility, analysts said.

Crude oil prices crossed the key psychological mark of $100 per barrel last week, the first time since Russia’s invasion of Ukraine in 2022. Despite attempts by the US administration to reassure markets, the conflict in the oil-rich Middle East continues to intensify.

Iran has warned that oil prices could surge to as high as $200 per barrel if the conflict escalates further. Mojtaba Khamenei, Iran’s new supreme leader and son of Ayatollah Ali Khamenei, described the Strait of Hormuz as a strategic “tool of pressure” that must remain shut during the conflict. In a message aired on state television, he also warned that US military bases across the region could face attacks as Iran seeks retaliation for casualties from the conflict.

Oil prices have risen amid growing expectations that the Strait of Hormuz may remain shut, disrupting global energy trade. The narrow 33-km waterway connecting the Persian Gulf and the Gulf of Oman carries more than 20% of the world’s oil and gas shipments, making it one of the most critical chokepoints in global energy markets.

What lies ahead for oil prices

Global crude oil prices could rise to $120 per barrel in the near term and potentially reach $150 per barrel if the war continues for over a month and geopolitical tensions remain elevated in West Asia, said Kayanat Chainwala, Assistant Vice President at Kotak Securities.

“Any prolonged disruption to this trade route will be bullish for crude oil and negative for other commodities, as it fuels inflation concerns and could delay interest rate cuts,” Chainwala said.
A report by Nuvama also noted that crude prices could climb to $150 per barrel if the Strait of Hormuz remains closed for four to eight weeks. However, such extreme price levels could eventually lead to demand destruction and trigger alternative supply responses.The report added that Asian economies are likely to bear the brunt of the disruption, as nearly 13 million barrels per day (mbpd) of oil shipments to countries including China, India, Japan and South Korea pass through the Strait of Hormuz.

Meanwhile, Systematix Institutional Equities said global crude markets have entered a phase of heightened volatility over the past two weeks, driven by the destruction of oil and gas assets in West Asia, which has added a strong geopolitical risk premium to prices.

“Tanker freight rates and insurance premiums for vessels passing through high-risk zones have also surged, significantly raising procurement costs,” the brokerage said.

How Indian stock markets may react

The Nifty 50 fell 5.3% last week as the Iran–Israel conflict, a weakening rupee, persistent FII outflows and concerns over fuel supply weighed on sentiment. While Systematix expects near-term volatility to impact valuations, it continues to prefer Reliance Industries, Petronet LNG, Deep Industries and Gulf Oil as long-term bets.

According to Vinod Nair, Head of Research at Geojit Investments, market direction in the coming weeks will largely depend on developments in the Iran conflict and the trajectory of crude prices, given their implications for inflation, corporate margins, the current account deficit and RBI policy flexibility.

“A firm dollar and higher US bond yields may keep FIIs selective and volatility elevated. Selective value opportunities may emerge in fundamentally resilient and domestically driven sectors, while energy-sensitive segments could remain under pressure if crude prices stay elevated,” he said.

He added that domestic institutional buying has provided some cushion, but a sustained market recovery would likely require clear signs of geopolitical de-escalation, stabilisation in crude prices and improved clarity on fuel supply dynamics.

Siddhartha Khemka, Head of Research – Wealth Management at Motilal Oswal Financial Services, said market volatility is likely to persist as geopolitical tensions disrupt the energy market and keep risk sentiment fragile.

“Indian equities have seen a sharp correction in 2026 amid heightened global uncertainty, resulting in significant erosion of market value across segments,” Khemka said.

The Nifty 50 has declined over 11% so far this year, while the Nifty Midcap and Smallcap indices are down around 10% each. In March alone, the Nifty has fallen about 8%, marking its steepest monthly decline since the pandemic-driven crash of March 2020.

On the currency front, the Indian rupee recently hit a record low of Rs 92.45 against the US dollar as rising energy prices and risk-off sentiment heightened concerns about India’s current account deficit, given the country imports nearly 88% of its crude oil requirements.

Elevated oil prices have also intensified concerns around inflationary pressures, widening external balances and pressure on corporate margins, prompting investors to trim equity exposure and shift towards safer assets.

“Rate-sensitive and cyclical sectors such as banking, financial services and automobiles have seen notable selling pressure,” Khemka added.

Looking ahead, markets are expected to remain highly sensitive to developments in the West Asia conflict, movements in crude oil prices and trends in foreign fund flows.

“Persistent foreign outflows and elevated oil prices could keep sentiment cautious, while any signs of easing geopolitical tensions may provide relief to markets,” he said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)