Oil prices rose more than one percent as peace talks between the United States and Iran stalled, heightening concerns about constrained global supply. Shipments through the Strait of Hormuz remain limited, keeping markets on edge and supporting higher prices.

Brent crude climbed to 106.68 dollars a barrel, while West Texas Intermediate reached 95.35 dollars a barrel. Both benchmarks had already posted sharp gains the previous week, marking their strongest increases since the start of the war.

Investor sentiment was further shaken after President Donald Trump cancelled a planned diplomatic trip and issued strong warnings about Iranian activity in the Strait of Hormuz. Analysts said the escalating rhetoric has added a significant war premium to oil prices as traders weigh the risk of further disruption in the region.