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

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

Middle East crisis – live updates

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Oil prices have risen sharply and European stock markets have fallen, 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.