Oil and Gas Jump After US Seizure of Iranian Ship Imperils Talks

Article content(Bloomberg) — Oil and natural gas prices soared after the US Navy seized an Iranian ship during a chaotic weekend that saw Tehran firing at vessels and reimposing controls in the Strait of Hormuz.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentBrent jumped as much as 7.9%, erasing most of its declines on Friday after a reopening of the key waterway was announced, while European gas surged as much as 11%. Tehran closed the chokepoint again on Saturday, after it said a US blockade of Iran-linked ships violated a ceasefire agreement that ends Tuesday.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentPresident Donald Trump said the US Navy fired upon and seized the ship in the Gulf of Oman after it failed to heed warnings to stop as it left Hormuz, the first major encounter in the week-old blockade. The incident came hours after a back-and-forth over potential peace talks in Islamabad, with Trump saying he saw a chance for a deal, while the Iranians said there was no “clear prospect” for an agreement.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“The market’s still carrying a risk premium into the deadline, but just not fully committing to it,” said Haris Khurshid, chief investment officer at Karobaar Capital LP in Chicago. “If things just continue as they are, you probably see a gradual push higher to around $105–$115, but with a lot of back and forth on headlines.”Article contentVice President JD Vance, special envoy Steve Witkoff and the president’s son-in-law Jared Kushner are scheduled to leave for Islamabad Monday night for talks on Tuesday, a White House official said. Iranian state TV cited a member of the country’s negotiating team denying any plan to participate in the meeting.Article contentThe standoff over Hormuz — through which about a fifth of the world’s oil and liquefied natural gas flowed before the US-Israeli war on Iran began at the end of February — threatens to deepen the global energy crisis and is undermining Trump’s weekend prediction of a quick end to the conflict. The waterway is just one of the unresolved issues, which also include Iran’s nuclear capabilities and Israel’s ongoing invasion of Lebanon.Article contentNo crossings of ships were observed on Sunday through Hormuz, according to tracking data compiled by Bloomberg as of early afternoon in London. At least 13 oil tankers turned back toward the Persian Gulf on Saturday, abandoning their attempts to leave.Article contentThe conflict has triggered an unprecedented supply shock, intensifying inflationary pressures and weighing on worldwide economic growth. The cumulative global impact of the war will begin to emerge this week, with business surveys from multiple countries potentially flagging risks of stagflation. Article contentArticle contentArticle content—With assistance from Mia Gindis.Article contentTrending US Seizes First Iranian Ship in Blockade, Imperiling Talks PMN Business Posthaste: Why Canadians might be doomed to suffer a 'new normal' for oil prices News Brace for gas price 'shock' in inflation numbers out Monday, say economists Economy Bank of Canada's Macklem says he has spoken to Fed chair about risks from Anthropic's Mythos AI model Banking 'The impacts are massive': U.S. tariff change pushes Canadian manufacturers to the brink Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. US Seizes First Iranian Ship in Blockade, Imperiling Talks PMN Business Posthaste: Why Canadians might be doomed to suffer a 'new normal' for oil prices News Brace for gas price 'shock' in inflation numbers out Monday, say economists Economy Bank of Canada's Macklem says he has spoken to Fed chair about risks from Anthropic's Mythos AI model Banking 'The impacts are massive': U.S. tariff change pushes Canadian manufacturers to the brink Economy