Oil prices extended gains on Monday as efforts to end the Iran war appeared to have stalled, after a nuclear power plant in the United Arab Emirates (UAE) came under attack and as United States (USA) President Donald Trump is expected to discuss military options on Iran.
Brent crude futures climbed $1.65, or 1.51%, to $110.91 a barrel, but were off the $112 they had touched earlier for their highest since May 5.
US West Texas Intermediate crude stood at $107.42 a barrel, up $2, or 1.9%, after a rise to $108.70, its highest since April 30. The front-month June contract expires on Tuesday.
Both contracts gained more than 7% last week as hopes dimmed for a peace deal to end ship attacks and seizures around the key waterway of the Strait of Hormuz.
Last week’s talks between Trump and Chinese President Xi Jinping ended without an indication from the world’s top oil importer that it would help resolve the conflict unleashed by the US and Israeli attacks on Iran.
Drone attacks on the UAE and Saudi Arabia and rhetoric from the US and Iran raised concerns of an escalation in the conflict.
Oil prices hit the heart of the US shale industry
–Reuters–
