Oil prices surged more than 6% on Monday trading amid concerns that the ceasefire between the United States and Iran may collapse. The rise followed the U.S. seizure of an Iranian cargo ship and continued disruptions to traffic through the Strait of Hormuz.
Brent crude futures climbed $5.51, or 6.1%, to $95.89 a barrel by 0752 GMT, while U.S. West Texas Intermediate gained $5.46, or 6.5%, to $89.31.
Both benchmarks had dropped 9% on Friday after Iran announced that commercial vessel passage through the strait would remain open during the ceasefire.
U.S. President Donald Trump stated that Iran had agreed not to close the strait again, through which roughly one-fifth of global oil supply passes.
On Sunday, the United States confirmed it had seized an Iranian cargo ship attempting to breach its blockade. Iran responded by warning of retaliation, increasing fears of renewed conflict.
Tehran also announced it would not take part in a second round of negotiations that the U.S. had hoped to begin before the two-week ceasefire ends later this week.
Data from Kpler showed that more than 20 ships passed through the strait on Saturday carrying oil, liquefied petroleum gas, metals, and fertilizers the highest number of crossings since March 1.
