Europe open: Shares slip into red as oil rises on US threat to close Iran airlines

(Sharecast News) - European shares slipped into the red as oil prices rose slightly after the US threatened to shut down Iranian airlines, increasing Gulf tensions. The pan-regional Stoxx 600 index slipped 0.1% to 641 at 0720 GMT with all major bourses lower. Britain's FTSE 100 fell after official data showed government borrowing jumped last month.

Brent crude gained 1.44% to $101.78 a barrel after US Treasury Secretary Scott Bessent warned that all Iranian airlines will be shut down globally from 23 September, saying airports, fuel suppliers and ticketing firms risk being cut off from the dollar system if they continue servicing the carriers.

Bessent said the move forms part of Washington's widening sanctions campaign, targeting not only Iran's aviation sector but also foreign intermediaries and banks accused of supporting the regime, with several countries - including Iraq and Georgia - already preparing to bar Iranian flights.

In equity news, shares in Kingfisher jumped as the European DIY retailer lifted full year guidance after posting a jump in half-year profits.

Reporting by Frank Prenesti for Sharecast.com