Oil prices opened sharply higher on Monday shortly after US President Donald Trump said he rejected Tehran's response to Washington's peace proposal, and Iran renewed threats of violence in the Strait of Hormuz.
The international benchmark for oil, Brent crude that is being prepared for July delivery, was up 2.69 percent to $104.01 a barrel.
Its US counterpart, West Texas Intermediate, rose 2.54 percent to $97.84 a barrel.