Brent crude. The international benchmark for oil prices, rose by 5% to about $95 a barrel after the United States seized an Iranian cargo ship, according to The Guardian. The incident occurred as Donald Trump announced on Sunday that an Iranian vessel had been detained after attempting to pass through the US-enforced blockade near the Strait of Hormuz.

European Markets React to Rising Tensions

European stock markets dropped following the news, with the UK’s blue-chip FTSE 100 index down 0.6%. The French Cac 40 and the German Dax fell by about 1%, while the Stoxx Europe 600 index, which tracks the biggest companies on the continent, was down 0.8%.

The incident raised concerns that the ceasefire could fail before negotiators reconvened in Pakistan; the Iran war, now entering its eighth week, has killed thousands of people and has rocked the global energy market. Normally, about a fifth of the world’s oil and gas passes through the Strait of Hormuz, according to the report.

Impact on Aviation and Energy Sectors

Airline stocks also fell sharply on Monday amid fears over the impact on international travel and jet fuel shortages, while International Airlines Group, the owner of British Airways, dropped 2%, while Wizz Air fell 5%. Ryanair, Europe’s biggest airline, fell 3%. Rolls-Royce, which manufacturers engines for aircraft, also fell by 3.7%.

Meanwhile, energy companies BP and Shell were among the biggest risers on the FTSE 100 on Monday, with shares in both up more than 2%. This came after oil prices had slumped 9% on Friday, following Iran’s announcement that it would reopen the Strait of Hormuz during the agreed two-week ceasefire period.

However, over the weekend, there were reports that Iran’s Major Guards had fired upon commercial vessels. Tehran has also stated it will not participate in a second round of negotiations that the US had hoped to start before the ceasefire expires on Wednesday.

Shipping at a Standstill, Fears of Energy Shortages

Shipping through the Strait of Hormuz is now in effect at a standstill, with only three crossings in 12 hours, according to satellite analysis from SynMax and tracking data from Kpler. The oil product tanker Nero. Which is under sanctions imposed by Britain because of Russian oil activities, left the Gulf and was sailing through the strait. A chemical tanker and a liquefied petroleum gas tanker also sailed into the Gulf through the strait, it found; the LPG tanker was under US sanctions for Iran trading activities.

Susannah Streeter. The chief investment strategist at the broker Wealth Club, said hopes for the resumption of trade, especially energy shipments, had evaporated, causing “fresh jitters” in the stock market. “Deep reserves of patience are needed. But with some industries such as airlines staring at jet fuel shortages, these are tense times,” she said.

Fears continue to grow around the scale of the energy shock in the UK, where wholesale gas market prices rose by 2.6% to 99.6p a therm on Monday. Analysts at the Energy and Climate Intelligence Unit have estimated that a sustained oil price of $100 a barrel would mean UK motorists who drive 8,000 miles a year could face an increase in annual fuel costs of £140.

The British Oil Security Syndicate. An industry trade organisation, told the Sun there had been a 19% increase in drive-offs and failures to pay at UK forecourts since the start of the US-Israel war on Iran. There are fears the US blockade could also trigger a fertiliser shortage, one of the vital commodities that normally passes through the strait, in a significant risk for global food security.

Chicago wheat futures rose 1.3% at $6.07-1/4 a bushel on Monday, after a 5% rise last week, according to the report.