Oil Prices Soar as Iran-US Ceasefire Fears Intensify

Oil prices surged by nearly 5% on Monday as concerns grew that the ceasefire between the US and Iran could collapse.

The rise in oil prices was sparked by the US seizing an Iranian cargo ship, which Tehran said it would retaliate against.

The move, combined with the continued disruption of shipping traffic through the Strait of Hormuz, has heightened fears of a resumption in hostilities and a further deterioration in global oil supplies.

‘The physical market is deteriorating day by day,’ said Bjarne Schieldrop, an analyst at SEB Research. ‘Physical oil flows remain constrained by disrupted flows, longer voyage times and elevated freight and insurance costs.'