Oil prices rise 5% on fears of U.S.-Iran ceasefire collapse

Oil prices jumped more than 5% in Monday trading on fears that a fragile ceasefire between the U.S. and Iran could break down after the U.S. seized an Iranian cargo ship and traffic through the Strait of Hormuz remained largely halted.

Brent crude futures advanced $5.08, or 5.62%, to $95.46 a barrel by 1:19 p.m. ET (1719 GMT) and U.S. West Texas Intermediate was up $5.04, or 6.01%, at $88.89. Both contracts had tumbled by 9% on Friday for their largest daily declines since April 18 after Iran said that passage for all commercial vessels through the Strait of Hormuz was open for the remainder of the ceasefire.

U.S. President Donald Trump, meanwhile, said that Iran had agreed never again to close the strait through which about a fifth of the world's oil supply passed before the war began almost two months ago.

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