Oil prices rise and markets fall after US ship seizure hits Iran peace deal hopes

FTSE 100 slides and UK gas prices up amid fears strait of Hormuz will be closed for extended period

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Oil prices rose sharply and European stock markets fell on Monday, after the US seizure of an Iranian vessel hit hopes for a peace deal.

Brent crude, the international benchmark for oil prices, rose by as much as 5% on Monday to $95.50 (£70.75) a barrel.