Oil prices jumped more than 4% on Monday after the United States and Iran failed to reach an agreement on a peace proposal drafted by Washington, while the Strait of Hormuz remained largely closed, leading to continued global energy supply shortages.
Brent crude futures rose 4.4% to $105.79 a barrel.
US West Texas Intermediate crude also rose by 4.9% to $100.16 a barrel, after ending the previous session up 0.64%.
Hopes for a near-term end to the 10-week-long conflict between the US and Iran, which would allow oil to flow again through the Strait of Hormuz, have faded after US President Donald Trump on Sunday described Iran's response to Washington's proposal for peace talks as unacceptable.
Trump is expected to arrive in Beijing on Wednesday, where US officials said he is expected to discuss the Iranian issue along with other matters with Chinese President Xi Jinping.
Tony Sycamore, a market analyst at IG, said in a note: Markets are now turning their attention directly to President Trump's visit to China this week.
He added that there are hopes that Trump can persuade Beijing to use its influence on Iran to push for a comprehensive ceasefire and an end to the ongoing unrest in the Strait of Hormuz, according to Reuters.
In the same context, Amin Nasser, CEO of Saudi Aramco, said on Sunday that the world has lost about one billion barrels of oil in the past two months, noting that energy markets will need time to stabilize even if the flow of supplies resumes.
Data from shipping tracking firm Kpler showed that two more tankers loaded with crude oil left the Strait of Hormuz this week with their tracking devices switched off, in an effort to avoid Iranian attacks, reflecting a growing trend to maintain oil exports from the Middle East.
