ABNA24 - Oil prices rose sharply and European stock markets fell on Monday, after the US seizure of an Iranian vessel hit hopes for a peace deal.
Brent crude, the international benchmark for oil prices, rose by as much as 5% on Monday to $95.50 [£70.75] a barrel.
European stock markets dropped, with the UK’s blue-chip FTSE 100 index down 0.5%. The French Cac 40 and the German Dax both fell by about 1%. The Stoxx Europe 600 index, which tracks the biggest companies on the continent, was down 0.9%.
It comes after Donald Trump announced on Sunday that an Iranian cargo ship that tried to get past the US-enforced blockade near the strait of Hormuz shipping channel had been seized.
He wrote on social media: “We have full custody of their ship, and are seeing what’s on board!”
The incident raised the possibility that the ceasefire could fail before negotiators reconvene in Pakistan.
Airline stocks also fell sharply on Monday amid fears over the impact on international travel and jet fuel shortages. IAG, the owner of British Airways, dropped 3.4%, while Wizz Air dropped 4.9%. Ryanair, Europe’s biggest airline, fell 3.3%. Rolls-Royce, which manufacturers engines for aircraft, also fell by about 3%.
The energy companies BP and Shell were among the biggest risers on the FTSE 100 on Monday, with shares in both up more than 2%.
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