Global oil prices rose significantly on Monday morning in Asian markets, amid a tense geopolitical climate between the United States and Iran.

The market reaction came after President Donald Trump announced that the US had stopped and seized an Iranian-flagged cargo ship, raising concerns about further escalation in the region.

The situation became even more tense after Tehran announced on Saturday that it would again close the Strait of Hormuz to commercial ships, warning that any vessel approaching it would be targeted.

As a result, Brent crude futures rose 4.74% to $94.66 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude rose 5.6% to $88.55 a barrel.