Meanwhile, Gulf countries scramble to secure alternative routes for export: File Image/Pixabay

U.S. president Donald Trump’s blocking of the Strait of Hormuz in response to the collapse of the U.S./Iran ceasefire talks caused analytical handwringing in many circles, but investors took solace that the two-week ceasefire didn’t collapse along with them – and as such, crude prices remained  under $100 – but just barely.

Brent settled up 4.4 percent at $99.36 per barrel, and West Texas Intermediate climbed $2.51 to $99.08 per barrel.

Brent Joyce, chief investment strategist at BMO Private Wealth, remarked, “It’s still a bit of a relief rally that we have enough of a ceasefire holding in the Middle East to be viewed as constructive, given the breakdown of peace talks over the weekend.”

Joyce added, “The view that markets are taking when you compare near-term, immediate delivery oil prices … and compared to what the futures market is pricing for oil, there is still an expectation that this is going to get resolved to some extent and oil prices will come down pretty substantially.”

But for the near term, the blockade will presumably keep even more oil off the global market, and this caused U.S. Department of Energy secretary Chris Wright to state that prices are likely to peak in the next few weeks.

"We're going to see energy prices high - and maybe even rising - until we get meaningful ship traffic through the Strait of Hormuz," Wright said. "That'll probably hit the peak oil price ⁠at that time; that's probably sometime in the next few weeks."

Trump on Sunday said oil and gasoline prices may remain high until November’s midterm elections.

For the record, U.S. Central Command said the blockade would be limited to ships going to and from Iranian ports; ships entering and exiting non-Iranian ports will not be stopped by U.S. forces.

In other war-related news on Monday, anonymous trading sources told media that Saudi Arabia is expected to send about 20 million barrels of crude to China next month – about half of its usual volume, while it and other Gulf exporters search for alternative ways to move oil to market (the Kingdom is currently redirecting as many barrels as possible to the Yanbu port on the Red Sea).