-- EMEA crude futures diverged in after-hours trading on Monday, supported by growing concerns that a fragile US-China ceasefire could break down, following Washington's seizure of an Iranian cargo vessel and continued disruption to shipping via the Strait of Hormuz.
Brent crude futures climbed by 8.82% to $88.73 per barrel, while Murban oil futures were down 0.13% to $91.58/bbl.
Bjarne Schieldrop, chief commodities analyst at SEB Research, said, "... the financial market is trading negotiations, improvements and resolution while at the same time the physical market is deteriorating day by day."
"Physical oil flows remain constrained by disrupted flows, longer voyage times and elevated freight and insurance costs," he added.
President Trump reportedly said on Monday that a US negotiating team, led by Vice President JD Vance, is en route to Pakistan for talks with Iran, and said that it is "highly unlikely" he would extend the two-week ceasefire with Iran if a deal is not reached before it ends.
Meanwhile, Iran expressed reluctance about sending its own delegation to Pakistan for a second round of talks. Foreign Ministry spokesman Esmail Baghaei said on Monday that Tehran had no plans to attend the potential negotiations with Washington, according to media reports.
"The standoff threatens to deepen the global energy crisis, as Hormuz, responsible for about a fifth of global oil and LNG trade, remains effectively closed, amplifying supply shocks, fuelling inflation, and raising risks to global growth," said Soojin Kim, research analyst at MUFG.
Over the weekend, traffic in the Hormuz reduced significantly after Iran announced it had closed the world's most crucial oil chokepoint again, according to Kpler. On Sunday, the US Navy fired on an Iranian cargo vessel in the Gulf of Oman.
The Navy later took custody of the ship, accusing the container ship of trying to break through its blockade as Tehran warned it would retaliate, heightening fears of a resumption in hostilities.
The seizure follows Iran's attack on commercial vessels in the Strait on Saturday, including a container ship belonging to France's CMA CGM and two Indian-flagged ships that were attempting to cross the strategic waterway.
China's President Xi Jinping called for the normal passage of ships through the Hormuz to be maintained in a phone call with Saudi Arabia's Crown Prince Mohammed bin Salman on Monday.
Xi reportedly said that the Strait of Hormuz should maintain normal passage, as this serves the common interests of regional countries and the international community.
Saxo Bank strategists said that the prolonged conflict has triggered a major energy shock, stoking inflation risks and fears of a global slowdown as hopes for peace have faded.