Oil Prices Climb as European Stocks Advance Following US Seizure of Iranian Vessel

By Lauren Almeida

*Published: 2026-04-20T11:28:06.000Z*

Oil prices increased and European stock markets advanced on Monday after the United States seized an Iranian cargo ship near the Strait of Hormuz.

Brent crude, the international benchmark, rose 4.8% to $94.69 (£70.07) per barrel, according to market data.

The UK's FTSE 100 index gained 0.7%. France's Cac 40 and Germany's Dax each rose about 1%, while the Stoxx Europe 600 index, tracking major continental companies, increased 1.1%.

The developments followed an announcement on Sunday by former US President Donald Trump, who posted on social media that US forces had seized the vessel after it attempted to pass a US-enforced blockade near the Strait of Hormuz shipping channel. Trump wrote: “We have full custody of their ship, and are seeing what’s on board!”

The incident occurred amid a ceasefire in the Iran conflict, which began on February 28, 2026, when the US and Israel conducted strikes on Iranian nuclear and missile facilities, citing threats to US interests from Iran's programs. The ceasefire started on April 8 after approximately six weeks of fighting. The US announced a blockade on April 12 after diplomatic talks stalled. Negotiators had been scheduled to reconvene in Pakistan, but Iran stated it would not participate in a second round before the ceasefire expires on Wednesday.

The Strait of Hormuz handles about one-fifth of global oil and gas shipments. Satellite analysis from SynMax and tracking data from Kpler showed shipping activity at a standstill on Monday, with only three vessels crossing in 12 hours: the oil product tanker Nero (under British sanctions for Russian oil activities), which exited the Gulf; a chemical tanker entering the Gulf; and a liquefied petroleum gas (LPG) tanker (under US sanctions for Iran-related trading), also entering.

This followed a surge of more than 20 vessels on April 19. Oil prices had fallen 9% on Friday after Iran announced it would reopen the strait during the two-week ceasefire period. Trump stated that Tehran had agreed not to close the channel again. Weekend reports, unconfirmed by independent sources, indicated that Iran's Revolutionary Guards fired on commercial vessels.

Airline shares declined amid concerns over potential jet fuel shortages and travel disruptions. IAG, parent of British Airways, fell 3%; Wizz Air dropped 5.4%; Ryanair, Europe's largest airline by passengers, decreased 3%; and Rolls-Royce, an aircraft engine manufacturer, slipped about 3%.

Energy firms BP and Shell were among the top gainers on the FTSE 100, with shares up more than 2% each.

Susannah Streeter, chief investment strategist at Wealth Club, said resumption of trade, particularly energy shipments, appeared uncertain, contributing to market movements. “Deep reserves of patience are needed, but with some industries such as airlines facing potential jet fuel shortages, these are tense times,” she said.

In the UK, wholesale gas prices rose 5.8% to 102 pence per therm on Monday, per market reports. Analysts at the Energy and Climate Intelligence Unit estimated that sustained oil at $100 per barrel could raise annual fuel costs by £140 for UK drivers covering 8,000 miles.

The British Oil Security Syndicate, an industry group, reported to The Sun a 19% rise in fuel thefts and non-payments at UK petrol stations since the start of the US-Israel operations against Iran.

The blockade has raised concerns about potential shortages of fertilizers, which typically transit the strait, posing risks to global food supplies. Chicago wheat futures rose 1.3% to $6.07-1/4 per bushel on Monday, following a 5% increase the prior week.

Iran has described the US seizure as an act of piracy, according to state media, while emphasizing its refusal to engage in further talks under current conditions. The US maintains the blockade enforces compliance with ceasefire terms and addresses prior Iranian threats to the shipping lane.

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