Oil prices climbed further on Monday, rising 2% as stalled peace talks between the United States and Iran and restricted flows through the Strait of Hormuz kept global supplies tight.
Brent crude futures gained $2.16, or 2.05%, to reach $107.49 a barrel by late trading, marking their highest level since April 7. U.S. West Texas Intermediate (WTI) rose $1.77, or 1.88%, to $96.17 a barrel.
Both benchmarks posted sharp gains last week, with Brent up nearly 17% and WTI about 13%—their biggest weekly increases since the early days of the conflict. Optimism over renewed diplomacy faded over the weekend after U.S. President Donald Trump cancelled a planned visit to Islamabad by envoys Steve Witkoff and Jared Kushner, despite Iranian Foreign Minister Abbas Araqchi arriving in Pakistan.
Analysts said the move increases pressure on Tehran, which could face production challenges at its aging oil fields if storage capacity runs out.
Meanwhile, tensions continue to disrupt key shipping routes. Iran has largely shut the Strait of Hormuz, while Washington has imposed a blockade on Iranian ports. Shipping data showed only one oil products tanker entered the Gulf on Sunday, highlighting the slowdown in traffic.
Reflecting the tightening supply outlook, Goldman Sachs raised its fourth-quarter forecasts to $90 per barrel for Brent and $83 for WTI, citing reduced Middle East output.
The bank warned that economic risks may exceed its base-case scenario, pointing to the possibility of higher oil prices, elevated refined product costs, potential shortages, and the scale of the ongoing supply shock.