Iran says the capture was because the tanker didn’t follow maritime rules.

Oil caught a quick bid on the report, rallying to $55.77 from $55.40.

Update: British officials are reportedly meeting now to discuss the incident. The Revolutionary Guard in Iran say the taken was taken to a coastal area and turned over to maritime authorities to take the ‘necessary steps’.

I don’t think this is going to cause WWIII but oil has been beat up this week and has found a way to stage a recovery.

A statement from the UK government says it is ‘urgently seeking further information’ on the tanker, which is owned by Stena Bulk.