Oil surges over 3pc

Oil rose three per cent on Monday as mounting attacks by the Iran-aligned Yemeni Houthi militant group on ships in the Red Sea disrupted maritime trade. A Norwegian-owned vessel was attacked in the Red Sea on Monday and oil major BP said it has temporarily paused all transits through the body of water. Other shipping firms said over the weekend that they would avoid the route. Brent crude futures were up $2.33, or 3.1pc, to $78.88 a barrel by 11:20 a.m. ET (16:20 GMT), while US West Texas Intermediate crude rose $2.27, or 3.2pc, to $73.68. Both crude benchmarks posted small gains last week, following seven weeks of decline, after a US Federal Reserve meeting raised hopes that the US central bank’s interest rate hikes are over and cuts are on the way.