Renewed tensions between the U.S. and Iran have pushed the two nations to the brink of war following attacks on commercial ships in the Strait of Hormuz. The US Navy seized an Iranian ship during a chaotic weekend in which Tehran fired at vessels and reimposed controls in the critical waterway, preventing tankers from passing through.
Oil and natural gas prices soared in response to the standoff. The price of U.S. crude oil increased 6.4% to $87.88 per barrel on the Chicago Mercantile Exchange, while Brent crude, the international standard, climbed 6.5% to $96.25 per barrel. Brent crude jumped as much as 7.9 per cent, erasing most of its declines from Friday, April 17.
Stock futures tumbled Sunday evening as traders prepared for a bumpy start to the week. This uncertainty follows a period where the S&P 500 Index reached a record and traders had been hopeful on Friday that a peace deal was near. Energy markets have experienced wild swings since the US and Israel attacked Iran on 28 February.