Oil prices have jumped $3 a barrel as the United States and Iran failed to agree to a peace proposal drafted by Washington, while the Strait of Hormuz remained largely closed, keeping global energy supplies tight.
Brent crude futures climbed $3.18 or 3.14% to $104.47 a barrel, extending a 1.23% gain on Friday.
US West Texas Intermediate was at $98.51 a barrel, up $3.09, or 3.24%, after settling 0.64% higher in the previous session.
Hopes for an imminent end to the 10-week-old US-Iran conflict that would allow oil transit through the Strait of Hormuz were dashed after President Donald Trump on Sunday dismissed the Iranian response to a US proposal for peace talks as “unacceptable”.
Trump is scheduled to arrive in Beijing on Wednesday and is expected to discuss Iran among other topics with Chinese President Xi Jinping, according to US officials.
“Market attention now shifts squarely to President Trump’s visit to China this week,” IG market analyst Tony Sycamore said in a note.
