Iran threatened retaliation after the seizure in the Gulf of Oman, and it wasn't clear whether Tehran would attend talks in Pakistan, with a ceasefire set to expire Wednesday.

Brent crude oil futures rose sharply when markets opened Sunday night amid signs the US-Iran peace talks had stalled.

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.

Global oil prices rose in Monday morning trade in Asia after President Donald Trump said the US has intercepted and seized an Iran-flagged cargo ship. It came after Iran said on Saturday that it was closing the Strait of Hormuz waterway again to commercial vessels and that any ship that approaches it would be targeted.

Tehran put limits on the Strait of Hormuz's opening, as the United States issued a new sanctions exemption on the sale of Russian oil.

Iran has reversed course on reopening the Strait of Hormuz and fired on a tanker attempting to pass the waterway

The standoff over the Strait of Hormuz escalated again Saturday as Iran reversed its reopening of the crucial waterway and fired on ships attempting to pass, in retaliation after the United States pressed ahead with its blockade of Iranian ports.

Oil prices jumped after the U.S. seized an Iranian cargo ship and traffic through the Strait of Hormuz remained largely halted.