Oil prices rose by more than one per cent on Monday after US President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the Strait of Hormuz.
Brent crude futures gained $1.82, or 1.74 per cent, to $106.14 a barrel by 2202 GMT.
US West Texas Intermediate crude also rose by $1.14, or 1.23 per cent, to $93.55 a barrel.
The rise followed Trump’s rejection of Tehran’s proposal to resolve the conflict and restore shipping through the Strait of Hormuz.
The waterway is a major route for global oil shipments, and any prolonged disruption could reduce supplies and push crude prices higher.
Oil markets have remained sensitive to developments around the conflict because of the strait’s importance to global energy trade.
Trump’s decision has renewed concerns about continued tensions in the region and the safety of vessels carrying crude through the waterway.
The latest increase comes after oil prices had been under pressure as investors weighed the possibility of a diplomatic solution to the conflict.
Traders are now watching developments around the Strait of Hormuz for signs of further disruption to global crude supplies.
