"Airline stocks have dropped due to most of them cancelling all flights to Israel until further notice, if the trouble is confined to Palestine and Israel then the stocks should bounce back soon, if it escalates to other countries then this could significantly cause flight disruption over those areas. Would this disruption effect RR flying hours?"
It would actually increase the hours as the routes would take a detour around the area.
Yes, it is frustrating but it is still rising piece by piece and slowly but surely. We've had 2 major steps up this year and the third will be in November.
The fall so far today does not reflect any bad RR news but simply the profit taking by people who will eventually reinvest at some point. Given the history, at the last minute today or tomorrow morning, we will see a rapid shot back up.