Oil prices traded sharply higher on Monday as tensions mounted between the U.K. and Iran, increasing expectations that tensions in the Persian Gulf could potentially lead to a disruption of crude supply.
New York-traded West Texas Intermediate crude futures rose 75 cents, or 1.4%, to $56.38 a barrel by 7:51 AM ET (11:51 GMT), while Brent crude futures, the benchmark for oil prices outside the U.S., gained 80 cents, or 1.3%, to $63.27.
U.K. Prime Minister Theresa May was set to hold an emergency meeting on Monday to discuss with British ministers the appropriate action to take to maintain the security of shipping in the Strait of Hormuz, the bottleneck for the shipping of about one-fifth of world’s oil.
That comes after a British-flagged tanker was seized by Iran in the Persian Gulf last Friday and is the latest development in heightened tensions in the region, particularly between Washington and Tehran.
The U.S. accused Iran of being behind two tanker attacks in the region since May and threatened on Friday to down any Iranian drones that fly too close to its ships.
Source : Investing.com