Shafaq News
Oil prices jumped more than 5% on Monday, on fears that theceasefire between the United States and Iran could collapse after the U.S.seized an Iranian cargo ship, while traffic through the Strait of Hormuz stayedlargely halted.
Brent crude futures advanced $5.08, or 5.62%, to $95.46 abarrel by 0418 GMT and U.S. West Texas Intermediate was at $88.86 a barrel, up$5.01, or 5.97%.
Both contracts tumbled by 9% on Friday, their largest dailydeclines since April 18, after Iran said passage for all commercial vesselsthrough the Strait ofHormuz was open for the remaining ceasefire period and U.S. President DonaldTrump said Iran has agreed to never close the strait again.
"Within 24 hours of Friday's 'completely open'announcement, there were already tankers that were fired upon by the IslamicRevolutionary Guard Corps (IRGC), leading to more fears from the shippers onattempting to leave," said June Goh, a senior oil market analyst at SpartaCommodities.
"Market fundamentals are getting worse, as 10-11 millionbarrels per day of crude oil remains shut in."
The United States said on Sunday that it had seized anIranian cargo ship that tried to run its blockade while Iran said it wouldretaliate amid growing worries of a resumptionof hostilities.
Tehran also said it would not participate in a second roundof negotiations that the U.S. had hoped to kick off before its two-weekceasefire with Iran expires this week.
The United States has maintained a blockade of Iranianports, while Iran has lifted and then re-imposed its own blockade of theStrait, which handled roughly one-fifth of the world's oil supply before the war began almost twomonths ago.
"Oil markets continue to gyrate in response tooscillating social media posts by the U.S. and Iran, rather than the realitieson the ground which remain challenging for oil flows to resume in a rapid fashion," SaulKavonic, MST Marquee's head of research, said.
"The announcement of the Strait opening provedpremature," Kavonic said.
"Ship owners will be twice shy about heading towardsthe Strait again without receiving much more confidence that any announced passage isreal."
More than 20 ships passed the strait on Saturday carryingoil, liquefied petroleum gas, metals and fertilizers, Kpler data showed, thehighest number of vessels crossing the waterway since March 1.
(Reuters)
Only the headline is edited by Shafaq News Agency.