Live updates: Follow the latest news on the Iran war
Oil surged on Monday after the US Navy seized an Iranian-flagged cargo vessel in the Gulf of Oman, the latest escalation in a maritime stand-off that has choked one of the world's most critical energy routes.
Brent, the benchmark for two thirds of the world’s oil, rose 5.33 per cent to $95.20 at 7.49am UAE time. West Texas Intermediate, the gauge for US oil, gained 6.03 per cent to $88.91 a barrel. Both benchmarks recovered most of Friday's losses after an announcement that the Strait of Hormuz would reopen proved short-lived.
The USS Spruance intercepted the Touska after its crew was warned to stop, with US President Donald Trump saying the US Navy "blew a hole in the engine room". US Marines have custody of the vessel.
Iran shut the strait again on Saturday, blaming US "breaches of trust" over the naval blockade, which has so far redirected at least 25 commercial vessels away from Iranian ports.
The weekend also drew India into the dispute. New Delhi summoned Iran's ambassador after Iranian gunboats fired on two Indian-flagged merchant ships during the brief reopening of the strait. The incidents mark a serious breach given India's status as a designated safe-passage country.
On Saturday, more than 20 vessels carrying oil products, metals, gas and fertiliser transited the strait – the highest daily count since March 1, Kpler data shows. By Sunday, that number had fallen to zero. The daily average of transits before the war was 138, data from the UK Maritime Trade Operations shows.
The stand-off has posed challenges to Gulf producers. On Sunday, Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, called Iran's actions in the strait and its demand for payment for safe passage a "protection racket", in a post on X. He said the crisis has blocked nearly 600 million barrels of oil.
"Hormuz belongs to the world. It must be returned to the world. Exactly as it was,” Dr Al Jaber said.
A two-week ceasefire between the US and Iran expires on Wednesday. Tehran said on Sunday that it would not attend a second round of talks in Islamabad because of the US naval blockade. It also denounced what it called unrealistic demands from Washington, further limiting the prospects of a quick resolution.
