Oil prices jumped during trading on Monday, continuing the strong upward trend that began last week, amid escalating geopolitical tensions in the Middle East and declining prospects of reaching a settlement to end the war in Iran.
The gains came after reports that US President Donald Trump is preparing to hold a meeting with his top national security advisers on Tuesday to discuss possible military options against Iran, according to Axios, which has increased market concerns about the widening scope of the conflict and its impact on global energy supplies.
In the markets, Brent crude futures for July delivery rose 1.75%, or $1.93, to $111.19 a barrel.
Meanwhile, Nymex crude oil for June delivery rose by 2.1%, or $2.24, to reach $107.66 per barrel.
Prices also received additional support after the expiration of the waiver from US sanctions, which had allowed some countries – including India – to continue purchasing Russian oil transported by sea.
Washington had extended the waiver for only one month before deciding not to renew it again, a move that could lead to a tightening of the global oil supply.
The recent moves reflect growing anxiety in energy markets, especially with ongoing tensions related to the Strait of Hormuz, one of the world's most vital oil trade routes, where concerns remain about the targeting and seizure of commercial vessels and oil tankers in the region.
Brent and Nymex crude had recorded gains of more than 7% during the past week, driven by fading hopes of reaching an agreement that would ease tensions and restore stability to global supply flows.
