Oil prices jump as Trump threatens to bomb Oman

Good afternoon, ladies and gents, and happy hump day. Have you noticed your bag of chips looking a little lighter lately? Today we break down shrinkflation, how it works, why companies do it, and how it’s been happening in Egypt over the past decade. We also have a pizza spot in Korba where the pizza comes down to you in a basket from an upstairs window, which is either the best or most complicated way to get dinner — we’ll let you decide.

First up, the news…

THE BIG STORY ABROAD-

🌐 Oil prices are back on the up after the 60-day agreement between the US and Iran expired yesterday, with US President Donald Trump ruling out any extensions and threatening to “bomb the [s***]” out of Oman if the key mediator “gets in the way.” Oman is yet to respond to Trump’s threats. Brent Crude is locking in at over USD 90 / bbl, with WTI crossing the USD 85 / bbl threshold at the time of publication.

^^Read more on: The Guardian, CNBC, Reuters, and Bloomberg.

AND- Iran issued a list of demands to be fulfilled by the US in exchange for re-opening the Strait of Hormuz. Tehran’s conditions include lifting the US blockade on Iranian ports, releasing Iran’s frozen assets, lifting Iranian oil sanctions, and ending all military threats and operations. This comes amid reports of a vessel being struck in the strait earlier this morning by an unknown projectile, leaving one dead, according to the UK Maritime Trade Operations.

^^Read more on: CNN, Reuters, and The Independent.

MEANWHILE- Trump’s approval ratings are at the lowest they’ve ever been as more and more Americans remain concerned about the war with Iran. Only 33% of those surveyed in Reuters’ latest four-day poll said they approved of the US president.

^^Read more on: Reuters.

IN OTHER NEWS- Russia accused the UK of escalating the Ukraine conflict after it was confirmed that Ukraine used British-made drones in recent strikes on Russia. “London’s actions will inevitably carry consequences for which it will have to answer,” the Russian ambassador to the UK said in a statement, adding that the more involved the UK gets, the “higher the price it will pay.” The UK government doubled down, expressing further commitment to Ukraine and its right to defend itself.

^^Read more on: The Guardian and BBC.

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** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• Four names are graduating to the EGX30, while four are dropping out under the exchange’s newly overhauled index methodology. Misr Fertilizer Production (Mopco), Alexandria Containers and Goods, Cleopatra Hospital, and Sidi Kreir Petrochemicals (Sidpec) will join the bourse’s benchmark index, effective 1 September, replacing Arabian Cement, Egyptian Chemical Industries, Oriental Weavers, and Orascom Investment Holding;
• Valu closed its maiden conventional corporate bond issuance yesterday, raising EGP 1 bn under a newly established EGP 10 bn program. The transaction gives Valu a new route to debt financing beyond its established use of receivables-backed securitizations and bank facilities;
• The Finance Ministry plans to source 89-93% of its FY 2026/27 financing needs from the domestic market, with external borrowing accounting for just 6-9%. Other sources, including asset monetization proceeds, are expected to cover the remaining c. 0.5-0.8%.

☀️ TOMORROW’S WEATHER- Things remain familiarly warm in Cairo tomorrow, with the mercury set to peak at 35°C under a hazy sun before dropping to 24°C overnight, accompanied by a steady breeze. The North Coast brings a sunny, milder high of 31°C and a clear overnight low of 23°C, according to our favorite weather app.