The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures narrowed on Monday.
WCS for June delivery in Hardisty, Alberta, settled at $16.25 a barrel, below the U.S. benchmark WTI, according to brokerage CalRock, compared to $16.30 on Friday.
* While the discount has narrowed, the price marks the steep differential for heavy Canadian crude since the start of the U.S. war on Iran.
* The WCS differential has been volatile since the start of conflict and the effective closure of the Strait of Hormuz, which has sharply reduced crude exports from the region and left energy importers scrambling for alternative supplies.
* With the Strait of Hormuz closed, there is a supply shortage of heavy and sour grades of crude oil in Asia, which is increasing demand for Canadian barrels in overseas markets.
* Oil prices jumped on Monday after Iran stepped up attacks on the United Arab Emirates and ships in the Middle East over the past 24 hours.
(Reporting by Siddharth Cavale in New York; Editing by Tasim Zahid)