As we know that the 15 British navy personnel were seized at gunpoint by Iranian forces.
This is the major reason for the hike of oil prices rapidly. The incident caused an immediate reaction in the markets, with a barrel of light, sweet crude rising to $62.65 - its highest mark since December.
Investors are very much worried by the Iran's volatile relationship.
Tehran, who is known as the 4th most popular exporter of oil has informed that it would stop its exports if they are attacked.
This would be a serious problem in the coming up days. There was a rise in Brent crude by 67 cents at $63.18 while US light, sweet crude had fallen back slightly to $62.28, still up 59 cents on the day.