LONDON — Oil costs rose greater than 2 per cent on Monday on considerations that Iran’s seizure of a British tanker final week might result in provide disruptions within the energy-rich Gulf.
Brent crude futures climbed US$1.41, or 2.26 per cent, to US$63.88 a barrel by 0840 GMT.
West Texas Intermediate (WTI) crude futures had been up $1.13, or 2.03 per cent, at US$56.76 a barrel.
Final week, WTI fell over 7 per cent and Brent misplaced greater than 6 per cent.
Tensions surrounding Iran “have possible added to the already sturdy geopolitical threat premium,” JBC Power mentioned in a notice.
Iran’s Revolutionary Guards mentioned on Friday that they had captured a British-flagged oil tanker within the Gulf in response to Britain’s seizure of an Iranian tanker earlier this month.
The transfer has elevated the concern of potential provide disruptions within the Strait of Hormuz on the mouth of the Gulf, by way of which flows about one-fifth of the world’s oil provides.
Britain was weighing its subsequent strikes on Monday, with few good choices obvious as a recording emerged exhibiting the Iranian army defied a British warship when…