Latest uncertainty over Iran war sends oil prices back up

OIL prices rose yesterday after the US seizure of an Iranian cargo ship threw the peace process into chaos.

- 

(TOMOHIRO OHSUMI)

Hopes of a breakthrough and the full reopening of the Strait of Hormuz, the crucial oil and gas shipping route, have receded following the US attack on the Touska.

The prolonged uncertainty, with the US-Iran ceasefire due to end on Wednesday, is likely to further impact households in the UK facing higher petrol and diesel costs at fuel pumps now and the prospect of rising energy bills later in the year.

Oil benchmark Brent crude jumped 5% higher to 94.72 US dollars a barrel in Monday morning trading as a result of the fragile situation in Iran and the fresh closure of the Strait of Hormuz.