Oil prices surge on war

Brent crude has climbed toward $96 a barrel following the US seizure of an Iranian cargo ship and reports of gunfire in the Persian Gulf.

The escalation has reversed Friday's market optimism, with analysts warning that gas prices in the US could remain above $4 per gallon through the busy travel season.

Shipping traffic through the Strait of Hormuz is at a virtual standstill as both nations trade accusations of ceasefire violations.

Investors are now pricing in a prolonged period of energy supply volatility as diplomatic efforts in Pakistan remain uncertain.