Irish prices 11% higher for US tourists as dollar falls
Oil prices have surged after Israel launched an attack on Iran's nuclear programme with financial markets anxious over retaliatory action.
The price of Brent crude jumped nearly 10% higher at one stage before easing back a little to stand 7% higher at $74 a barrel. Energy traders will be watching to see whether Iran retaliates in the coming days.
The cost of crude oil affects everything from the price of food at the supermarket to how much it costs to fill up your car.
The founder and CEO of Sommerville Advisory Markets, Paul Sommerville, said inflation data in the US during the week was "absolutely frigid, very cold", but he added that the markets were expecting that.
"Oil prices have actually gone up about 40% since early April, the markets are anticipating that more inflation is going to be coming through the system, so it's just exacerbated this morning," said Mr Sommerville.
"The markets were already anticipating that and that's why bond yields were trading higher and the dollar's trading lower," he stated.
He said that because of the spend that Donald Trump is doing, because of the way the US is handling or mishandling their finances, the markets are anticipating more inflation into the system - that is just showing with those oil prices up 40% since April.
The dollar sank to a three-year low yesterday after President Trump said he will send out letters with trade deal terms.
The euro on the other hand soared to its highest level in almost four years against the dollar.
"The dollar has fallen by the 11% since the start of 2025 - that means for US tourists coming to Ireland this summer our prices are 11% higher for those guys who are spending the money in the economy here," Mr Sommerville said.
"Also for our exports going over to the US, that's a 11% headwind in 2025 before tariffs are even contemplated, so you can see that the pressure is coming on the dollar and also on bond yields and the reason being is because the mismanagement of the US economy," he concluded.
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RTÉ News
a day ago
- RTÉ News
Irish prices 11% higher for US tourists as dollar falls
Oil prices have surged after Israel launched an attack on Iran's nuclear programme with financial markets anxious over retaliatory action. The price of Brent crude jumped nearly 10% higher at one stage before easing back a little to stand 7% higher at $74 a barrel. Energy traders will be watching to see whether Iran retaliates in the coming days. The cost of crude oil affects everything from the price of food at the supermarket to how much it costs to fill up your car. The founder and CEO of Sommerville Advisory Markets, Paul Sommerville, said inflation data in the US during the week was "absolutely frigid, very cold", but he added that the markets were expecting that. "Oil prices have actually gone up about 40% since early April, the markets are anticipating that more inflation is going to be coming through the system, so it's just exacerbated this morning," said Mr Sommerville. "The markets were already anticipating that and that's why bond yields were trading higher and the dollar's trading lower," he stated. He said that because of the spend that Donald Trump is doing, because of the way the US is handling or mishandling their finances, the markets are anticipating more inflation into the system - that is just showing with those oil prices up 40% since April. The dollar sank to a three-year low yesterday after President Trump said he will send out letters with trade deal terms. The euro on the other hand soared to its highest level in almost four years against the dollar. "The dollar has fallen by the 11% since the start of 2025 - that means for US tourists coming to Ireland this summer our prices are 11% higher for those guys who are spending the money in the economy here," Mr Sommerville said. "Also for our exports going over to the US, that's a 11% headwind in 2025 before tariffs are even contemplated, so you can see that the pressure is coming on the dollar and also on bond yields and the reason being is because the mismanagement of the US economy," he concluded.
RTÉ News
a day ago
- RTÉ News
Oil prices soar after Israel's strike on Iran alarms market
Oil prices jumped more than $4 a barrel today, hitting their highest price in almost five months after Israel struck Iran, dramatically escalating tensions in the Middle East and raising worries about disrupted oil supplies. Brent crude futures jumped $4.60, or 6.63%, to $73.96 a barrel this morning after hitting an intraday high of $78.50, the highest since January 27. US West Texas Intermediate crude was up $4.99, or 7.33%, at $73.03 a barrel after hitting a high of $77.62, its highest since January 21. Today's gains were the largest intraday moves for both contracts since 2022 after Russia invaded Ukraine, causing energy prices to spike. Israel said it targeted Iran's nuclear facilities, ballistic missile factories and military commanders at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon. "A key question is whether the Iranian retaliation will be limited to Israel or if the leadership will seek to internationalise the cost of the action by targeting bases and critical economic infrastructure across the wider region," RBC Capital analyst Helima Croft said in a note. Several oil traders in Singapore said it was still too early to say if the strike will affect Middle East oil shipments as it will depend on how Iran retaliates and if the US will intervene. "It's too early to tell but I think the market is worried about shutting off of the Strait of Hormuz," one of the traders said. Barclays analyst Amarpreet Singh said the attack has alarmed oil markets although these attacks have had no effect on oil market fundamentals so far. "In a worst-case scenario, the conflict could expand to other key oil and gas producers in the region, and shipping," he said in a note. The $10 a barrel price gain in the past three days had yet to reflect any drop in Iranian oil production, let alone an escalation that could involve disruption to energy flows through the Strait of Hormuz, he said. About a fifth of the world's total oil consumption passes through the Strait or some 18-19 million bpd of oil, condensate and fuel. Iran's Supreme Leader Ayatollah Ali Khamenei said Israel will receive "harsh punishment" following the attack that he said killed several military commanders. U.S. Secretary of State Marco Rubio has called Israel's strikes against Iran a "unilateral action" and said Washington was not involved while also urging Tehran not to target US interests or personnel in the region. RBC's Croft said: "If oil is caught in the cross-fire, we anticipate that President Trump will seek OPEC spare barrels to try to keep a lid on prices and shield US consumers from the economic impact of the Middle East conflict." In other markets, stocks dived in early Asian trade, led by a selloff in US futures, while investors scurried to safe havens such as gold and the Swiss franc.
RTÉ News
2 days ago
- RTÉ News
Oil prices ease from more than two-month peak
Oil prices fell today after sharp gains in the previous session as market participants assessed a US decision to move personnel from the Middle East ahead of talks with Iran over the latter's nuclear-related activity. Brent crude futures were down $1.31, or 1.9%, at $68.46 a barrel at 1202 GMT, while US West Texas Intermediate crude was $1.32, or 2%, lower at $66.83 a barrel. A day earlier both Brent and WTI surged more than 4% to their highest since early April. US President Donald Trump said the US was moving personnel because the Middle East "could be a dangerous place". He also said the US would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful. Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday. "Geopolitical risk premia tend to fade if there are no supply disruptions. We are still higher than two days ago as some short investors prefer to stay on the sidelines amid the uncertainty," UBS analyst Giovanni Staunovo said. On Wednesday Britain's maritime agency warned that increased tensions in the Middle East may lead to an escalation in military activity that could impact shipping in critical waterways. It advised vessels to use caution while travelling through the Gulf, the Gulf of Oman and the Straits of Hormuz, which all border Iran. "For the oil market, the absolute nightmare is a closure of the Strait of Hormuz," Global Risk Management analyst Arne Rasmussen said in a LinkedIn post. "If Iran blocks this narrow chokepoint, it could affect up to 20% of global oil flows," he added. JPMorgan said oil prices could surge to $120-$130 a barrel if the strait were to be shut, a scenario the bank considered to be severe but low-risk. The US meanwhile is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East due to heightened security risk in the region, Reuters reported on Wednesday citing US and Iraqi sources. Iraq is the second-biggest crude producer after Saudi Arabia in the Organization of the Petroleum Exporting Countries. A senior Iraqi oil official told Reuters foreign energy firms continue operating normally in the country. Trump has repeatedly said the US would bomb Iran if the two countries cannot reach a deal regarding Iran's nuclear-related activity including uranium enrichment. Iran's Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike US bases in the region if talks fail and if the US initiates conflict. US Special Envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran's response to a US proposal for a deal. The UN nuclear watchdog's 35-nation Board of Governors declared Iran in breach of its non-proliferation obligations on Thursday for the first time in almost 20 years, raising the prospect of reporting it to the UN Security Council.
