Oil rises above $90 as US-Iran strikes escalate; Ryanair reports lower fares
10 reported3 unconfirmed
Brent crude oil rose 2.7% to $90.49 a barrel on July 20, reaching as high as $91.41, its highest level since June, as US strikes against Iran escalated and a fragile ceasefire agreement signed a month ago unraveled. The US announced the death of a third American service member over the weekend, after two were killed in an Iranian attack on a Jordanian base on Friday, with another missing in action. President Donald Trump said “we hit them very hard again tonight” as he returned to Washington after the World Cup final. Iran broadened its retaliation beyond military sites, targeting critical infrastructure across the Gulf, including power and desalination facilities in Kuwait, and launched drone and missile attacks toward US bases and regional allies. Iran’s Revolutionary Guard claimed two oil tankers were blown up after attempting to transit the southern route of the Strait of Hormuz, but there was no independent confirmation. European stock markets fell, with the Euro Stoxx 600 down 0.2% and the UK’s FTSE 100 down 0.6%, while energy companies BP and Shell rose on the elevated oil price. Ryanair reported first-quarter average fares 6% lower than last year, with CEO Michael O’Leary citing the Middle East conflict for consumer hesitancy and later bookings.
What’s reported
Brent crude rose 2.7% to $90.49 a barrel, hitting as high as $91.41, its highest since June.
Three US service members were killed in separate incidents in Jordan and Iraq; two died in an Iranian attack on a Jordanian base on Friday, with another missing in action.
US President Donald Trump said “we hit them very hard again tonight” after returning from the World Cup final.
Iran targeted critical infrastructure in Kuwait, including power and desalination facilities, and launched drone and missile attacks toward US bases and regional allies.
Iran’s Revolutionary Guard claimed two oil tankers were blown up after attempting to transit the southern route of the Strait of Hormuz; no independent confirmation.
The British military reported a ship caught fire in the Strait of Hormuz near Oman’s coastline; cause unclear.
European stock markets fell: Euro Stoxx 600 down 0.2%, FTSE 100 down 0.6%.
Ryanair reported first-quarter average fares 6% lower than last year; profit after tax fell 34% to €538m, down from €820m.
Morgan Stanley warned European diesel inventories could fall to multi-year lows toward year-end.
PVM Oil Associates said Europe is “particularly vulnerable” to a squeeze on finished fuel supply due to a heatwave and rising demand.
Open questions
What triggered the ship fire in the Strait of Hormuz near Oman’s coastline.
Whether Iran’s claim of blowing up two oil tankers is accurate, as there was no independent confirmation.
The full extent of damage from US strikes on Qeshm Island and southern Iran.
Key figures
John Evans, analyst at PVM Oil Associates
Martijn Rats, analyst at Morgan Stanley
Jim Reid, analyst at Deutsche Bank
Michael O’Leary, chief executive of Ryanair
Donald Trump, US president
Araghchi, Iran’s foreign minister
Sources: The Guardian
