Oil prices rise 6 percent on US-Iran ceasefire fears
Oil prices rose 6% as the U.S. seizure of an Iranian ship threatened the current ceasefire. Tehran declined further talks as shipping disruptions persisted.
Global energy markets experienced a sharp reversal on Monday as Brent Crude Oil futures surged by more than 6%. The price spike follows escalating tensions between the United States and Iran, sparking fears that a recently established ceasefire could be on the verge of collapse. Early trading saw Brent crude advance $5.51, or 6.1%, to reach $95.89 a barrel, while U.S. West Texas Intermediate rose $5.46, or 6.5%, to $89.31.
This volatility comes after both contracts plummeted by 9% on Friday, marking their steepest daily declines since mid-April. That sell-off was triggered by an announcement from Tehran suggesting that the Strait of Hormuz would remain open to commercial traffic for the duration of the ceasefire. However, the situation deteriorated quickly over the weekend following reports that the American military seized an Iranian cargo ship accused of attempting to bypass a blockade.
