[Photo Credit to Pixabay]

Global oil prices rose on Monday, April 20th, after President Donald Trump announced that the United States had seized an Iranian cargo ship with an Iran-flag.

U.S. crude oil prices jumped more than seven percent, reaching $90 per barrel.

Additionally, International Brent crude oil rose five percent, reaching $95 per barrel.

S&P 500 futures fell by more than seven percent, Nasdaq 100 futures fell 0.7 percent, and Dow futures, 0.7, and Russell 2000 futures, 1.4 percent.

In addition, wholesale gas prices were four percent higher, heating oil futures also rose five percent, and natural gas prices rose one percent.

Also, the average price of one gallon was $4.04, according to AAA.

The prices started to move after a senior Iranian official told Reuters that the nation was "positively" reviewing possible peace talk with the U.S.

However, Donald Trump, the president of the U.S told Bloomberg News that it was "highly unlikely” and he extended the two-week ceasefire which will expire on Wednesday evening, Washington time.

Trump further declared, “I’m not opening(the Strait of Hormuz) until a deal is signed.

The reason why oil prices have fallen is because Iran typically sees more than twenty percent of the world’s oil pass, but it has been close since the start of the march.

On Monday, only three ships were spotted(recorded) crossing the waterway, but before the war, there were about hundreds of ships per day.

Opening the strait and returning to a system that allows oil and liquefied natural gas to pass through to global markets is the primary focus of investors, who are looking for any signs that this outcome is closer.

On Friday, Iran declared the strait open, and oil prices decreased by 11 percent.

However, officials delayed that back over the weekend, making the U.S of only "partially implementing the ceasefire” by keeping its own naval blockade of the strait.

When Iran declared the strait closed again, a lot of commercial ships that had been prepared to transit the strait turned back.

Shipping giant CMA CGM reported that one of its ships had come under fire Saturday, but, “The crew is safe and unharmed.

President Donald Trump also accused Iran of attacking ships.

“Iran decided to fire bullets yesterday in the Strait of Hormuz - A Total Violation of  our Ceasefire Agreement,” Trump wrote Sunday morning on Truth Social.

“Many of them were aimed at a French Ship, and a Freighter from the United Kingdom.

Additionally, Trump said that the U.S military attacked and “blown a hole” in the engine in an Iranian ship that tried to cross the sea barrier.

“Iran will soon respond to this act of armed piracy and theft by the America military and will retaliate,” a spokesperson for Iran’s armed forces said on state TV.

So, in conclusion, “You'd see energy prices drop pretty significantly,” said Fox Business when the war between the United States of America and Iran Republic stops.