Oil Prices, Stocks Climb as US-Iran Standoff Keeps Hormuz in Limbo

Oil prices climbed more than 5% while Asian shares also advanced Monday as a standoff between Iran and the U.S. prevented tankers from using the Strait of Hormuz.

The Persian Gulf waterway was closed again after Iran reversed a decision to reopen the strait and President Donald Trump said a U.S. Navy blockade of Iranian ports remains in effect. U.S. benchmark crude gained 5.6% to $87.20 a barrel, while Brent crude, the international standard, was up 5.3% at $95.16 a barrel.

Despite renewed doubts about how soon ships will again transport the vast amounts oil the world gets from the Middle East, share prices were mostly higher in



Asia. 

In Tokyo, the Nikkei 225 gained 1% to 59,045.45, while South Korea's Kospi was up 1.1% at 6,260.92. 

Hong Kong's Hang Seng added 0.8% to 26,373.71 and the Shanghai Composite index advanced 0.6% to 4,075.08.

Australia's S&P/ASX 200 was nearly unchanged at 8,943.90. In Taiwan, the Taiex jumped 1.4%. “The problem for markets is not the absence of hope; it is the overpricing of it,” Stephen Innes of SPI Asset Management said in a commentary. 

“The latest move higher in equities has started to feel less like conviction and more like momentum feeding on itself.”