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Oil prices recorded a sharp increase on Monday, with Brent crude reaching $107 per barrel, amid escalating tensions in the Middle East that fueled fears of disruption in energy supplies.
Brent crude for November delivery rose by 2.8% to $107.54 per barrel, while U.S. West Texas Intermediate crude for October delivery rose by 2.3% to $102.34.
Oil continued to gain, adding to the gains recorded last week after prices returned above the $100 mark.
The market's focus remained largely on the Middle East, where new security concerns threaten major export routes.
This came as Saudi Arabia temporarily closed the East-West pipeline following drone attacks, while an Iranian commercial ship was attacked in the Strait of Hormuz on Sunday, resulting in one death, according to the Iranian governor of Qeshm Island.
The Strait of Hormuz was open to navigation before the war, but Iran now requires ships to obtain a transit permit and is considering a mechanism to impose service fees.
Non-compliant vessels are subject to Iranian attacks, while the United States regularly bombards the Iranian coast in defiance of the Islamic Republic's control over the Strait.
Oman announced on Sunday evening the postponement of a meeting scheduled for Monday between Iran and Gulf countries to discuss the future of the Strait of Hormuz.
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