Seoul Gazette - European stocks slide as oil jumps on Hormuz tensions

Investors were on edge approaching the end of the US-Iran ceasefire, with Iran insisting it has no plan to attend a new round of negotiations with the United States.

"The market mood is very different at the start of the week compared to Friday," said Kathleen Brooks, research director at trading group XTB.

Crude had plunged Friday after the Islamic republic said it would again allow ships to pass through the Strait of Hormuz, through which a fifth of global oil and liquefied natural gas usually passes.

But world oil prices bounced on Monday as Iran closed the waterway and said the US blockade and seizure of an Iranian cargo ship breached the two-week ceasefire.

In Europe, Paris and Frankfurt stock markets shed more than one percent in midday deals, while London was down 0.8 percent.

That came after gains for Tokyo, Hong Kong and Shanghai.

"Asian shares rebounded as they were in catch-up mode, having missed the rally seen in the US and Europe on Friday," said AJ Bell investment director Russ Mould.

"European indices presented a truer picture of the market mood, with investor wariness and weariness amid the continuing tensions in the Middle East," he added.

The blockade of Iranian ports has been a significant sticking point in negotiations between the two countries, who have both traded accusations of ceasefire violations.

The Fars and Tasnim news agencies had earlier cited anonymous sources as saying "the overall atmosphere cannot be assessed as very positive", adding that lifting the US blockade was a precondition for negotiations.

There has so far been only one negotiating session, held in Islamabad on April 11 that ended inconclusively, although groundwork for fresh talks continued afterwards.

"We're offering a very fair and reasonable DEAL, and I hope they take it," Trump said in a social media post Sunday, while also renewing his threats against Iran's infrastructure if a deal is not made.

Iran's Revolutionary Guards warned that any attempt to pass through the strait without permission "will be considered cooperation with the enemy, and the offending vessel will be targeted".

Chris Weston at Pepperstone said traders were assessing "whether the ceasefire can be salvaged through this week’s diplomatic talks, with recalibration on the probability of military escalation".

"Without a comprehensive agreement on Iran’s nuclear programme, the ceasefire remained fragile."

- Key figures around 1100 GMT -

West Texas Intermediate: UP 6.0 percent at $87.51 a barrel

Brent North Sea Crude: UP 5.0 percent at $94.88 a barrel

London - FTSE 100: DOWN 0.8 percent at 10,583.30 points

Paris - CAC 40: DOWN 1.2 percent at 8,322.53

Frankfurt - DAX: DOWN 1.5 percent at 24,341.13

Tokyo - Nikkei 225: UP 0.6 percent at 58,824.89 (close)

Hong Kong - Hang Seng Index: UP 0.8 percent at 26,361.07 (close)

Shanghai - Composite: UP 0.8 percent at 4,082.13 (close)

New York - Dow Jones: UP 1.8 percent at 49,447.43 (close)

Euro/dollar: DOWN at $1.1770 from $1.1776 on Friday

Pound/dollar: DOWN at $1.3517 from $1.3530

Dollar/yen: UP at 158.95 yen from 158.49 yen

Euro/pound: UP at 87.08 pence from 87.02 pence

T.Jeon--SG