Oil prices have jumped globally by more than 5% after President Donald Trump said the US had intercepted and seized an Iran-flagged cargo ship
It came after Iran said on Saturday that it was closing the Strait of Hormuz waterway again to commercial vessels and that any ship that approaches it would be targeted.
The global benchmark oil price rose by 5.4% at $95.27 (£70.62) a barrel, while the US benchmark was 5.9% higher at $88.79.
Energy markets have seen wild swings since the US and Israel attacked Iran on 28 February and Tehran responded with threats to target shipping in the strait, through which about 20% of the world’s oil and liquefied natural gas (LNG) passes.
On Friday, oil prices had sunk 9% after Iran said the Strait of Hormuz would be “completely open” to commercial ships for the remainder of the ceasefire that had been agreed.
Trump has said his representatives will be in Pakistan on Monday for negotiations. A White House official said Vice-President JD Vance would lead the US delegation.
But Iran’s state media said Tehran had “no plans for now to participate” in the talks, although Iranian officials have not clarified the country’s position yet.
“Oil markets continue to gyrate in response to oscillating social media posts by the US and Iran, rather than the realities on the ground which remain challenging for oil flows to resume in a rapid fashion”, analyst Saul Kavonic from financial services firm MST Marquee said to the BBC.
Follow Us on Facebook – @LadunLiadi; Instagram – @LadunLiadi; Twitter – @LadunLiadi; Youtube – @LadunLiadiTV for updates
Lord have mercy
Na wa o