STRAIT OF HORMUZ- Oil prices surged more than 5% on Monday as renewed tensions between the United States and Iran raised fears that a fragile ceasefire could collapse. The market reacted after the US seized an Iranian cargo ship and reports emerged of continued disruptions to traffic through the Strait of Hormuz, a key global oil shipping route.
Brent crude rose by $5.08 to $95.46 a barrel, while US West Texas Intermediate gained $5.01 to $88.86. The increase followed a sharp 9% drop on Friday, after earlier optimism about open passage through the strait. Analysts warned that renewed attacks on tankers by Iran’s Revolutionary Guard are increasing uncertainty and pushing shippers to avoid the region.
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