Shares of energy companies rose alongside oil futures amid doubts about the prospects of reopening the Strait of Hormuz.
Brent crude futures rose by more than 6% to trade around $97 a barrel after Iran's semi-official Tasnim news agency reported that the country was suspending negotiations with the U.S. over Israel's conduct.
Israel has expanded its military exercises in Lebanon, seizing the Crusade-era castle Beaufort, which had become a symbol of prior Israeli occupations.
President Trump said Israel and Iran-backed Hezbollah have agreed to stop fighting and that Israel would not be sending troops to Beirut.
Write to Rob Curran at rob.curran@dowjones.com
