-- Crude futures rebounded on Monday after the US Navy seized an Iranian cargo ship, while Tehran reimposed its blockade of the Strait of Hormuz and announced a boycott of upcoming peace negotiations in Islamabad.
The Brent futures contract climbed nearly 5% to $94.80 per barrel. Murban oil futures were up 2.1% to $93.63/bbl.
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 seizure, Tehran reimposed restrictions on the Strait of Hormuz and reportedly said it would boycott a 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.
Investors are currently focused on whether Pakistani mediators can bring both parties back to the table before the April 21-22 truce deadline.