'Resumption of hostilities': seized ship, vessel attacks push U.S.-Iran ceasefire toward brink

Fifty days into the U.S.-Israel war with Iran, tensions escalated again after clashes in the Gulf prolonged shipping disruptions and cast doubt on a fragile ceasefire set to expire this week.

On Friday, Iran declared the Strait of Hormuz fully open to commercial traffic, sending crude prices tumbling more than 10%. By Saturday, hopes for a fully opened artery quickly unraveled as Tehran reimposed closure of the chokepoint, after President Donald Trump refused to end the U.S. naval blockade of Iranian ports.

After a brief pickup in transit attempts on Saturday, shipping traffic in the Gulf stalled once again, with vessels coming under fire mid-passage and being forced to withdraw.

On Sunday, the U.S. Navy fired on and seized an Iranian container ship in the Gulf of Oman. Trump called Iran's actions over the weekend a “total violation” of the truce and renewed threats to strike Iranian power plants and bridges if Tehran refuses a deal.

For markets, it was a reminder of the fragility of the two-week ceasefire, and a deal that could bring a lasting end to the war is still far from done.

U.S. stock futures fell while crude oil prices surged as the U.S. and Iran teetered on the brink of a renewed conflict. jumped more than 6% to $89 per barrel shortly after midnight on Monday while and the international benchmark climbed 5.6% to $95.50 a barrel.