\n<\/p>\n
Oil prices rose sharply and European stock markets fell on Monday after the US seizure of an Iranian vessel dented hopes for a peace deal.<\/p>\n
Brent crude, the international benchmark for oil prices, rose by 5% to about $95 a barrel.<\/p>\n
European stock markets dropped, with the UK\u2019s blue-chip FTSE 100 index down 0.6%. The French Cac 40 and the German Dax fell by about 1%. The Stoxx Europe 600 index, which tracks the biggest companies on the continent, was down 0.8%.<\/p>\n
The price changes followed Donald Trump\u2019s announcement on Sunday that an Iranian cargo ship had been seized after trying to get past the US-enforced blockade near the strait of Hormuz shipping channel.<\/p>\n
He wrote on social media: \u201cWe have full custody of their ship, and are seeing what\u2019s on board!\u201d<\/p>\n
The incident raised the possibility that the ceasefire could fail before negotiators reconvened in Pakistan.<\/p>\n
Oil price chart<\/p>\n
The Iran war, which is now entering its eighth week, has killed thousands of people and has rocked the global energy market. Normally about a fifth of the world\u2019s oil and gas passes through the strait of Hormuz.<\/p>\n
Airline stocks also fell sharply on Monday amid fears over the impact on international travel and jet fuel shortages. International Airlines Group, the owner of British Airways, dropped 2%, while Wizz Air fell 5%. Ryanair, Europe\u2019s biggest airline, fell 3%. Rolls-Royce, which manufacturers engines for aircraft, also fell by 3.7%.<\/p>\n
The energy companies BP and Shell were among the biggest risers on the FTSE 100 on Monday, with shares in both up more than 2%.<\/p>\n
Oil prices had slumped 9% on Friday, after Iran said it would reopen the strait of Hormuz during the agreed two-week ceasefire period, and Trump said Tehran had agreed to never close the key shipping channel again.<\/p>\n
However, over the weekend there were reports that Iran\u2019s Revolutionary Guards had fired upon commercial vessels.<\/p>\n
Tehran has also said it will not participate in a second round of negotiations that the US had hoped to start before the ceasefire expires on Wednesday.<\/p>\n
Shipping through the strait of Hormuz is now in effect at a standstill, with only three crossings in 12 hours, according to satellite analysis from SynMax and tracking data from Kpler.<\/p>\n
The oil product tanker Nero, which is under sanctions imposed by Britain because of Russian oil activities, left the Gulf and was sailing through the strait, according to the data. A chemical tanker and a liquefied petroleum gas tanker also sailed into the Gulf through the strait, it found. The LPG tanker was under US sanctions for Iran trading activities.<\/p>\n
Susannah Streeter, the chief investment strategist at the broker Wealth Club, said hopes for the resumption of trade, especially energy shipments, had evaporated, causing \u201cfresh jitters\u201d in the stock market.<\/p>\n
\u201cDeep reserves of patience are needed, but with some industries such as airlines staring at jet fuel shortages, these are tense times,\u201d she said.<\/p>\n
Fears continue to grow around the scale of the energy shock in the UK, where wholesale gas market prices rose by 2.6% to 99.6p a therm on Monday.<\/p>\n
Analysts at the Energy and Climate Intelligence Unit have estimated that a sustained oil price of $100 a barrel would mean UK motorists who drive 8,000 miles a year could face an increase in annual fuel costs of \u00a3140.<\/p>\n
The British Oil Security Syndicate, an industry trade organisation, told the Sun there had been a 19% increase in drive-offs and failures to pay at UK forecourts since the start of the US-Israel war on Iran.<\/p>\n
There are fears the US blockade could also trigger a fertiliser shortage, one of the vital commodities that normally passes through the strait, in a significant risk for global food security.<\/p>\n
Chicago wheat futures rose 1.3% at $6.07-1\/4 a bushel on Monday, after a 5% rise last week.<\/p>\n","protected":false},"excerpt":{"rendered":"
Oil prices rose sharply and European stock markets fell on Monday after the US seizure of an Iranian vessel dented hopes for a peace deal. Brent crude, the international benchmark for oil prices, rose by 5% to about $95 a barrel. European stock markets dropped, with the UK\u2019s blue-chip FTSE 100 index down 0.6%. The<\/p>\n","protected":false},"author":1,"featured_media":48586,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[696,1600,102,459,84,2884,268,2523,269,313,10255,1405],"class_list":{"0":"post-48585","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-deal","9":"tag-fall","10":"tag-hits","11":"tag-hopes","12":"tag-iran","13":"tag-markets","14":"tag-oil","15":"tag-peace","16":"tag-prices","17":"tag-rise","18":"tag-seizure","19":"tag-ship"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/48585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48585"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/48585\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/48586"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}