LONDON: US and European stocks reversed on Monday as oil prices surged over fears hostilities could resume in the weeks-long Middle East war after Iran closed the Strait of Hormuz following its brief reopening.

Investors were on edge approaching the end of the US-Iran ceasefire, with Washington saying it will send a delegation to Pakistan for a new round of talks “soon” and Iran saying it had yet to decide whether to attend.

Brent crude futures advanced $4.61, or 5.1 per cent, to $94.99 a barrel by 11:26am ET (1526 GMT) and US West Texas Intermediate was up $4.33, or 5.16pc, at $88.18. Both contracts had tumbled by 9pc on Friday for their largest daily declines since April 18 after Iran said that passage for all commercial vessels through the Strait of Hormuz was open for the remainder of the ceasefire.

“The market mood is very different at the start of the week compared to Friday,” said Kathleen Brooks, research director at trading group XTB.

Crude had plunged Friday after Tehran said it would again allow ships to pass through the Strait of Hormuz, through which a fifth of global oil and liquefied natural gas usually passes.

But world oil prices bounced on Monday as Iran closed the waterway and said the US blockade and seizure of an Iranian cargo ship breached the two-week ceasefire.

“Renewed attacks on commercial vessels in the Strait of Hormuz increased fears of supply disruptions and raised the risk of a broader escalation in hostilities between the US and Iran,” said Trade Nation analyst David Morrison.

“Uncertainty also remains over whether negotiations in Islamabad will proceed after Iran said it would not attend talks while the blockade remains in place,” he added.

Wall Street’s main stock indices dipped, with the S&P 500 and Nasdaq Composite falling from record closes.

The S&P 500 shed 0.3pc, the Nasdaq Compo­site 0.5pc and the blue-chip Dow less than 0.1pc.

The losses were sharper in Europe. Frankfurt dropped 1.2pc, Paris shed 1.1pc and London gave up 0.6pc.

That came after gains for Tokyo, Hong Kong and Shanghai.

Published in Dawn, April 21st, 2026