European shares fell on Monday as an escalating US-Iran conflict drove oil prices higher, with Ryanair prompting a sell-off across airlines as its earnings slumped to fall short of market expectations. Oil prices wobbled as shipping traffic in the Strait of Hormuz came nearly to a halt as attacks between Iran and the US continued through the weekend and Yemen’s Houthi rebels threatened to cut off another crucial shipping route in the region. The global oil price briefly rose above $90 (€78.90) a barrel, the first time in more than a month, in a choppy trade.DublinThe Iseq All-Share index ended the session down 0.8 per cent. Ryanair slumped 4.6 per cent to €24.78 after the carrier’s net profit slid 34 per cent and missed consensus forecasts – with a fresh spike in oil prices also weighing on sentiment. Banking stocks were in demand, with AIB rising 1.3 per cent to €10.39 and Bank of Ireland advancing 1.7 per cent to €17.59, as sector followers assigned a higher probably to interest rate hikes as they monitored the latest inflation-stoking developments in the Middle East. The European Central Bank (ECB) meets later this week. Markets are expecting it to keep rates on hold, though they are pricing in at least one 0.25 of a percentage point increase by the end of the year. Home builders, however, were out of sorts. Cairn Homes lost 0.8 per cent to €2.46, while Glenveagh Properties declined 1.7 per cent to €2.35. LondonThe FTSE 100 lost 0.7 per cent as continued US-Iran tensions sapped risk sentiment globally, offering a muted reaction to ​Andy Burnham becoming the UK’s seventh prime minister in a decade.Burnham pledged to reshape the UK’s ​politics to deliver a new economic model and revive a nation “fed up” with a revolving door of leaders. He said he ⁠would set out immediate measures on Tuesday to ease everyday pressures on Britons.Heavyweight Pharma and Biotech stocks lost 1.6 per cent, with AstraZeneca – the second most valuable company in the UK In terms of market capitalisation – down 1.7 per cent.Wizz ​Air fell 2.9 per cent, Aer Lingus owner IAG dipped and EasyJet eased ​1.4 per cent each as sector followers mulled Ryanair’s quarterly results. EuropeTravel and leisure stocks were the biggest laggards, declining 0.95 per cent, as investors monitored the Middle East and Ryanair’s results. Among others, Thule fell 4.8 per cent after the Swedish sports and outdoor products maker reported ‌second-quarter sales that slightly missed market expectations and warned of price hikes.Swiss field device maker Belimo fell 3.6 per cent despite the data centre sector demand ​driving higher first-half revenue.New YorkThe ‌S&P 500 and the Nasdaq were ahead in early afternoon trading as chip stocks recovered from last week’s sharp sell-off, while investors looked ahead to earnings from big technology companies that have driven ​Wall Street’s AI-fuelled rally.Alphabet advanced after a report said its Google unit is developing a Gemini-integrated server chip aimed at improving AI efficiency and easing computing-capacity constraints.The second-quarter earnings season will pick up pace this week, with results due from Alphabet, Tesla, Intel and IBM.Investors will focus closely on Intel and Texas Instruments for any ​encouraging signs after a recent slide in semiconductor shares.A surge in AI capital spending by hyperscalers has been a big driver behind this year’s market gains, lifting chip stocks and other ⁠companies that are seen as the beneficiaries of the buildout, and helping Wall Street climb to record levels.But last week’s sell-off ‌raised ‌concerns ​that valuations had run too far, too fast.“Our expectation is that ⁠earnings will continue to be good. It’s just a little ​bit harder to tell if they will be better than expected because ​there’s such a high bar at this point,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management.Domino’s Pizza was up after the pizza ​chain’s quarterly revenue edged past Wall Street estimates. – Additional reporting, Reuters