European stocks dip as U.S.-Iran strikes enter ninth day

European equities traded lower on Monday as the US-Iran conflict entered its ninth consecutive day of American airstrikes, briefly pushing Brent crude above $90 a barrel and rattling markets already on edge over Middle East instability.

Oil Spike and Market Reaction

The pan-European STOXX 600 fell 0.3% while London's FTSE 100 dropped around 0.6%, according to The Wall Street Journal. Brent crude jumped nearly 4% overnight to break $90 per barrel before reversing course after Iran's Foreign Ministry spokesman Esmail Baghaei said negotiations with the United States "could be pursued based on national interests," according to CNBC. Oil prices subsequently erased their gains, with Brent settling back below $88.cnbc+1

The diplomatic signal from Tehran provided a measure of relief. Baghaei told reporters that intermediaries had continued to exchange messages with Iran amid the latest round of US strikes and American military casualties.cnbc

Ninth Day of Strikes

US Central Command confirmed that forces struck Iran for a ninth consecutive night starting Sunday evening, continuing operations to "degrade Iranian military capabilities used to attack commercial vessels and civilian mariners transiting the Strait of Hormuz". The campaign has now claimed the lives of at least three American service members this weekend alone, bringing the total US military deaths since the conflict began to 17.bworldonline+1

Reuters reported that concerns grew over shipping through the strategically vital waterway, with the Islamic Revolutionary Guard Corps claiming two oil tankers had exploded while attempting to transit what it described as an unsafe route. US gasoline prices hit $4 per gallon again on Monday, according to AAA.yalibnan+1

Ryanair Drags, Energy Majors Gain

Ryanair ↗ 1.09% shares slumped around 7% in Dublin after the Irish low-cost carrier reported a 34% drop in first-quarter profit to €538 million, down from €820 million a year earlier. The airline blamed the Middle East conflict for consumer hesitancy, combined with a 6% decline in fares and a doubling in unhedged jet-fuel costs.investor.ryanair+1

Energy majors Shell ↘ 2.27%, BP ↘ 3.45%, and TotalEnergies ↘ 3.04% gained on the initial crude price spike, benefiting from the geopolitical premium that has kept oil elevated throughout July. Amrita Sen of Energy Aspects warned that a substantial slowdown in Strait of Hormuz shipping could push prices above $100 per barrel.wsj+1