Hey rooroo
What happens is an acid catalyzed electrophilic aromatic substitution, where the protonated epoxide is the electrophile and benzene is the nucleophile. The nucleophile (benzene) opens the epoxide at the more substituted end, under the acidic conditions (can be explained in terms of a "loose SN2 transitionstate"). The reaction can also be catalyzed by Lewis acids, e.g. aluminumtrichloride.
Hope this answers your question
Rico