Oil settles up over $2 as Iran war stalemate stokes supply concerns

Oil prices rose over $2 on Monday due to fears over Iran's war stalemate disrupting oil supplies, according to wire reports. Brent crude futures rose $2.35, or 2.65%, to $90.87 a barrel, while U.S. West Texas Intermediate crude futures increased $2.10, or 2.55%, to $84.50 a barrel. U.S. President Donald Trump demanded Iran's surrender, threatening to bomb Oman if necessary.

Iran threatened retaliation if the U.S. fails to implement an interim peace deal, Reuters reported. Oil prices are likely to remain elevated unless there is a halt in crude exports from the Strait of Hormuz or a closure of the Bab el-Mandeb Strait, said Bjarne Schieldrop at SEB Research. U.S. Energy Secretary Chris Wright believes President Trump has the ability to wait out Iran while economic sanctions and oil embargo squeeze the country.