Shares of Royal Caribbean Group slid to session lows around midday after Mexican President Claudia Sheinbaum said her environment minister would review the cruise operator's proposed water park project in Quintana Roo, injecting new regulatory risk into the company's expansion plans.

President Sheinbaum was speaking at a regular press conference Monday morning, where she addressed a range of topics, from drug traffickers and President Trump to Royal Caribbean.

Sheinbaum said that SEMARNAT México, Mexico's federal environment ministry - formally the Secretaría de Medio Ambiente y Recursos Naturales - is conducting a very detailed review of Royal Caribbean's tourism project in Mahahual, Quintana Roo.

She assured that no construction would be permitted if it endangered the area's ecological balance.

Shares of Royal Caribbean fell to session lows, down about 3% around 12:45 ET.

The stock is locked in a bear market year to date, down 26%, and appears set to test $250 support. Shares have faced resistance and peaked at around $367 in August 2025.

There was no immediate indication as to why Sheinbaum's administration singled out Royal Caribbean, or whether the scrutiny was connected in any way to rising tensions with the Trump administration's war against drug cartels or pressure campaign on Cuba.