Markets twitch after ship seizure
- Oil prices rose and global markets slipped after the U.S. seized a ship, denting hopes for an Iran peace deal. - The Guardian's live coverage flagged oil’s rise and markets’ fall after the seizure. - Reporters noted markets are prioritizing immediate geopolitical shocks over policy adjustments right now (theguardian.com).
Oil jumped and stocks slipped on Monday after the U.S. seized an Iranian ship, shaking confidence that Washington and Tehran were close to a new deal. (usnews.com) Brent crude rose about 5% to $94.92 a barrel, while MSCI’s world share index fell 0.26%, Europe’s STOXX 600 dropped 1.1%, and S&P 500 futures were down 0.54% in early trading. (usnews.com) CNBC reported West Texas Intermediate jumped more than 6% to $89 a barrel and Brent climbed 5.6% to $95.50 after the U.S. Navy fired on and seized an Iranian container ship in the Gulf of Oman on Sunday. (cnbc.com) The move hit just as traders were watching a two-week ceasefire that expires on Tuesday and a possible second round of talks in Islamabad. Iranian Foreign Ministry spokesperson Esmaeil Baqaei said there was “no plan” for new talks “for now,” according to Reuters. (cnbc.com) The market reaction turned on the Strait of Hormuz, the narrow shipping lane between Iran and Oman that carries a large share of the world’s seaborne oil. Shipping traffic was near a standstill on Monday, with only three crossings in 12 hours, Reuters reported. (usnews.com) That bottleneck has already done damage well beyond one trading session. The International Energy Agency said global oil supply fell by 10.1 million barrels a day in March to 97 million barrels a day, calling it the largest disruption in history. (iea.org) The agency also said global observed oil inventories fell by 85 million barrels in March, with stocks outside the Middle East Gulf down 205 million barrels as flows through Hormuz were choked off. (iea.org) Friday had briefly pointed the other way. Iran said it would reopen the strait, crude prices fell more than 10%, and more than 20 vessels passed through on Saturday, the busiest day there since March 1, before traffic stalled again. (cnbc.com; usnews.com) Sandra Horsfield, an economist at Investec, said markets were lurching on each headline that points “to one outcome or another,” while Hargreaves Lansdown analyst Derren Nathan said “more volatility would seem the most likely outcome.” (usnews.com)
