Oil prices climbed Monday following renewed escalation in the Middle East after Iran shut the Strait of Hormuz days after reopening it, blaming the United States’ blockade of its ports.

Hopes for a deal to end the seven-week crisis continued to support equities, although Tehran said it has no plans to attend upcoming peace talks.

Crude had dropped sharply earlier after Iran briefly reopened the key waterway, which handles about a fifth of global oil and LNG flows, following a ceasefire between Israel and Lebanon.

Donald Trump said a deal was close, claiming there were no major obstacles left, but Iran rejected the position, insisting its enriched uranium would not be moved.

Prices rebounded strongly as tensions rose again, with the US blockade ongoing and after an American destroyer intercepted an Iranian vessel, prompting threats of retaliation from Tehran.

Iran signalled reluctance to continue negotiations, citing the blockade as a major barrier, while officials said the atmosphere for talks remains unfavourable.

Despite the tensions, global stocks rose, tracking gains in US markets, while the dollar strengthened as investors reacted to shifting expectations around the fragile ceasefire and uncertain diplomatic path.