Brent crude futures rose more than 5% on Monday to above $95 per barrel, reversing losses from the previous session as geopolitical tensions escalated in the Middle East.
The rally followed remarks from President Donald Trump that the US Navy seized an Iranian-flagged cargo vessel in the Gulf of Oman after it ignored orders while exiting the Strait of Hormuz.
In response, Tehran said it targeted ships and reasserted control over the Strait of Hormuz, arguing that US actions against Iran-linked vessels violated a ceasefire agreement.
The renewed tensions come after signs of easing last week, when markets had priced in progress toward a potential de-escalation. However, uncertainty has returned, even as Trump said US negotiators would travel to Pakistan for further talks on Monday.
The developments have added to concerns over global oil supply security, with traders citing heightened risk to flows through the Strait of Hormuz, a key route for global crude shipments.
