By: Economy Middle east

Oil prices extended gains on Monday as diplomatic efforts to resolve the conflict involving Iran appeared to stall. Market anxiety intensified ahead of discussions by U.S. President Donald Trump regarding potential military options.

By 8:32 UAE time, Brent crude futures climbed $2.01, or 1.84 percent, to trade at $111.27 a barrel, retreating slightly after hitting an intraday high of $112—its highest level since May 5. Concurrently, U.S. West Texas Intermediate (WTI) crude rose $2.33, or 2.21 percent, to stand at $107.75 a barrel, down from an earlier peak of $108.70, its highest point since April 30. The front-month June WTI contract is scheduled to expire on Tuesday.

Failed diplomatic interventions and sanctions pressure

Both global benchmarks surged by more than 7 percent last week as expectations dimmed for a diplomatic settlement to halt ship attacks and seizures near the critical maritime transit route of the Strait of Hormuz. High-level discussions between President Trump and Chinese President Xi Jinping concluded last week without any public commitment from China—the world’s largest oil importer—to assist in defusing the geopolitical friction sparked by U.S.-Israeli strikes on Iran.

Adding further upward pressure to global crude values, the Trump administration permitted the expiration of a critical sanctions waiver on Saturday. This decision ends a month-long extension that previously enabled select nations, including India, to legally purchase Russian seaborne crude. The convergence of restricted supply channels, expiring trade waivers, and targeted infrastructure risks continues to inject a significant geopolitical risk premium into international energy benchmarks.