Oil prices rose significantly

Brent, the global oil index, rose 3.8 per cent to $112.3 per barrel, while the UTI also increased by a similar amount to $11.6 per barrel. Oil is traded through future contracts, which means it is an agreement to buy or sell at a predetermined price on a future date. W TI is for surrender in June, while Brant reflects surrender in July.

Prices fell briefly during the day after the White House announced a plan to run ships from the Strait of Hormuz. CENTCOM said at the time it would “give trade ships that want to pass freely through this key international trade corridor”.

However, doubts remain whether American shipping would be enough to allow more tanks to pass. According to Stephen Innes of the National Investment Company, oil prices now reflect the “not only the disruption but also the risk of it extending”.

“Washington and Tehran have entered a competition that feels more like provocation than diplomacy”, he wrote in a note.

Meanwhile, the upcoming American stock contracts pointed to a slightly weaker opening, while stock indexes in Paris and Frankfurt also fell. In Asia, the South Korean Kospi index closed the day with a 5 per cent increase, led by an increase in semi-resident shares. Stock markets in Japan, China and the United Kingdom are closed today because of official holidays.