-- Brent crude futures recovered on Monday, fueled by the breakdown of ceasefire conditions and the seizure of an Iranian-flagged vessel.
The Brent futures contract climbed over 5% to $95.44 per barrel. Murban closed at $91.70 on April 17 and was not trading as of the time of publishing this oil price update.
"Oil prices surged with Brent crude climbing 6.5% to $96.27 per barrel as Iran accused the [US] of breaking the ceasefire and the Strait of Hormuz remained effectively shut to commercial shipping," Saxo Bank analysts said.
The primary catalyst for the price spike was a Sunday announcement from Washington that the US had seized an Iranian cargo ship allegedly attempting to run the blockade.
After the US seized an Iranian cargo ship, Tehran reimposed restrictions on the Strait of Hormuz and reportedly said it would boycott the critical second round of peace negotiations.
With the Strait of Hormuz effectively shut once more and Tehran snubbing upcoming talks in Pakistan, analysts warn of a fresh escalation as the truce expires.
The escalation has cast a shadow over the planned second round of peace negotiations, analysts said.
Investors are currently focused on whether the Pakistani mediators can pull both parties back to the table before the April 21-22 truce deadline.