-- Global energy benchmarks rebounded sharply on Monday as a weekend maritime confrontation between US and Iran shattered Friday's short-lived optimism.
The Brent futures contract climbed over 5% to $94.95 per barrel. West Texas Intermediate oil futures jumped 5.6% to $88.53/bbl.
The immediate driver of the price rise was a Sunday announcement from Washington detailing the seizure of an Iranian-flagged cargo ship for allegedly attempting to bypass the US naval blockade.
In direct retaliation, Iran reimposed transit restrictions on the world's most critical oil chokepoint. The move effectively erased the market relief felt last week when the waterway was briefly declared open for commercial vessels.
Tehran has further intensified the crisis by signaling it will boycott the upcoming second round of negotiations in Pakistan.
"After the US seized an Iranian-flagged vessel, there will be doubts over planned peace talks," ING analysts noted.
With Tehran snubbing a second round of talks and the Strait of Hormuz effectively shut again, analysts warn of a fresh escalation as the current truce is about to expire soon.
All eyes remain on Pakistani mediators to see if they can convince Tehran to return to the table before the April 21-22 deadline.