By: Economy Middle east

Oil prices rose 2 percent on Monday as peace talks between the U.S. and Iran stalled and shipments through the Strait of Hormuz remained limited, keeping global supplies tight.

Brent crude futures rose $1.98, or 2 percent, to $101.11 a barrel by 9:25 UAE time, after earlier gains of more than $2 a barrel. U.S. West Texas Intermediate was at $95.90 a barrel, up $1.5, or 1.59 percent.

Last week, Brent and WTI climbed nearly 17 percent and 13 percent, respectively, marking the biggest weekly gains since the start of the conflict.

Hope for revived peace efforts faded over the weekend after U.S. President Donald Trump scrapped a planned trip to Islamabad by his envoys Steve Witkoff and Jared Kushner, even as Iranian Foreign Minister Abbas Araqchi arrived in Pakistan.

Tehran has largely closed the strait while Washington has imposed a blockade on Iran’s ports. Traffic through the Strait of Hormuz remained limited, with just one oil products tanker entering the Gulf on Sunday, according to Kpler shipping data.

Goldman Sachs raised its fourth-quarter oil price forecasts to $90 a barrel for Brent and $83 for WTI, citing reduced output from the Middle East.