Oil Rises to $63 Amidst Persian Gulf Tension


Oil prices on Monday recorded a post modest gain despite tensions between Iran and the West, which mounted after Iranian forces seized a British-flagged oil tanker on Friday.


The West Texas Intermediate price rose by 1.1 percent to $56.32 per barrel (pb) on the New York Mercantile Exchange, while, the Brent crude being the global benchmark recorded an increase by 1.5 percent at $63.39 pb on the London Intercontinental Exchange (ICE) Futures Exchange.


In a bid to secure the release of the Stena Impero oil tanker, Britain's Foreign Minister Jeremy Hunt said after an emergency cabinet meeting that Britain "will not be part of the U.S maximum pressure policy on Iran".


However, United States Secretary of State, Mike Pompeo on Monday said the dispute between Iran and the U.S and U.K is due to the fundamental character of the Iranian government.


Iranian Officials have disclosed that the seizure of the Stena Impero by the Tehran forces was based on various reasons pollution and also as a retaliation for the British impounding of an Iranian tanker off the coast of Gibraltar two weeks ago, on the suspicion of a violation of a European Union embargo.