Oil prices surged on Monday after escalating tensions between the United States and Iran raised fears of renewed conflict in the Strait of Hormuz.

Brent crude and West Texas Intermediate both rose sharply following reports of attacks on commercial vessels and a U.S. seizure of an Iranian-linked ship in the Gulf of Oman.

Donald Trump said the ship was detained after attempting to breach a naval blockade and warned Iran of further military action if a deal is not reached.

Iran and the U.S. traded blame over violations of a fragile ceasefire and disputed access to the key shipping route, CNBC has reported.

The uncertainty has heightened concerns over global oil supply disruptions, driving prices higher.