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- The Middle East ceasefire has seen oil prices continue to decline as share buyback pushes IAG share price up, but its not all rosey.
IAG share price rose to two week highs on Wednesday, rising to hit $336. The stock’s upside is propelled by the ceasefire in the Middle East and an ongoing share buyback program. The calming of geopolitical risk has pushed oil prices down, providing tailwinds to IAG share. As of this writing, benchmark Brent crude oil price was at 67.53, down by 0.25% on the daily time frame.
The momentum on IAG share price calls for further upside, having gained 4.8% in the last five sessions. In addition, the Relative Strength Index (RSI) on the daily chart is at 56, with the price above the Volume Weighted Moving Average (VWMA). These add credence to the likely prevalence of the upside momentum in the near-term.
Meanwhile, International Consolidated Airline Group (LSE: IAG) continues to buy back shares in a €1 billion program launched in February. The program is set to continue for a year, with the first tranche worth €500 million having been completed in May. Also, the airline conglomerate is set to issue a €0.06 per share divided on June 26, double the amount issued a year ago. These factors have created an upbeat sentiment that could help sustain IAG share price upside.
On the downside, IAG had a net debt of €6.129 billion at the end of the first quarter of 2025, and that could weigh down its growth. In addition, its exposure to trans-Atlantic travel potentially predisposes it to trade tariff disruptions that could kick in once the initial 90-day pause put by US President Donald Trump comes to a close on July 9.
IAG Share Price Prediction
IAG share price pivot mark is at 330.9p and the momentum calls for further upside above that level. With the buyers in control, the stock will likely meet initial resistance at 327p. However, a stronger momentum could go above that barrier and send the price higher to test 323.7p.
Alternatively, the price could break below 330.9p and shift the momentum to the downside. That could see initial support established at 327.7p. Breaking below that level will invalidate the upside narrative, and an extended control by the sellers could send the price lower to test 323.6p.
