Introduction: Oil rises with US-Iran ceasefire ‘on tenterhooks’<\/p>\n
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/strong><\/p>\n Complacency that the Middle East confict might have been approaching an end has vanished from the markets today, as concern grows that hat the ceasefire between the United States and Iran might not hold.<\/p>\n After tumbling on Friday, when the strait of Hormuz was declared open again, oil is now pushing higher after Iran announced the waterway was closed again.<\/p>\n Tehran blamed Washington DC for maintaining its own blockade on Iranian ports; the US responded by seizing an Iranian-flagged cargo ship that tried to get through.<\/p>\n Donald<\/strong> Trump<\/strong> posted on social media:<\/p>\n double quotation mark\u201cWe have full custody of their ship, and are seeing what\u2019s on board!\u201d<\/p>\n<\/blockquote>\n With Iran state media reporting that Tehran is not currently planning to take part in new talks with the US, the oil price has jumped.<\/p>\n Brent crude, which fell 9% on Friday, has now risen by 5% so far today, back to $95.60 a barrel.<\/p>\n Kyle Rodda, <\/strong>senior financial market analyst at capital<\/strong>.com, <\/strong>says there had been \u201ca high degree of complacency\u201d that the ceasefire would hold and a peace deal would materialise. Those de-escalation hopes are now at risk, he adds:<\/p>\n double quotation markThe markets are set for a spicy start to the week, with initial moves in futures and FX violent. Tensions about the control and closure of the Strait of Hormuz have flared again, threatening peace talks between the US and Iran.<\/p>\n While the ceasefire hasn\u2019t formally broken down, it is on tenterhooks after Iran reversed its decision to end its blockade on the grounds that the US is still blockading Iranian ports. Iran has fired on ships trying to pass through the Strait and turned them around, while the US took control of an Iranian flagged vessel by force.<\/p>\n While hopes remain that it is in both sides best interests to de-escalate, there is the elevated risk that it doesn\u2019t, plunging the global economy deeper into an energy crisis.<\/p>\n<\/blockquote>\n The agenda<\/p>\n\n
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