Price West Texas Intermediate (WTI) crude oil increased by 8.04%. up to $90.59 per barrelwhile Brent crude oil increased by 6.88%. up to $96.60 per barrel.
Iran announced on Monday “swift retaliation” for the seizure of one of its cargo ships by the US Navy. US President Donald Trump earlier announced that the US Navy opened fire on the Iranian cargo ship Touska in the Gulf of Oman and took control of it.
Tensions around the Strait of Hormuz are rising again
Tehran currently does not intend to “participate in the next round of Iran-US talks,” Iranian state television reported on Sunday. Amid a continuing U.S. blockade of ports, Iran announced Saturday it was regaining “tight control,” reversing its decision the previous day to reopen the sea route that typically transports one-fifth of the world's oil and gas trade.
— The most important news for the markets is undoubtedly the seizure of an Iranian ship by the American military in the Gulf of Oman, after which Iran immediately announced retaliation, noted Chris Weston, an analyst at the brokerage firm Pepperstone. — There is a risk-averse atmosphere at the start of this week. (…) Normalization of transit through the Strait of Hormuz was seen as a major diplomatic victory. However, in the absence of a comprehensive agreement on Iran's nuclear program, the ceasefire remains fragile, he emphasizes.
