Ammon News - Oil ‌prices extended gains on Monday as efforts to end the Iran war appeared to have stalled, after a nuclear power plant in the United Arab Emirates came under attack and as U.S. President Donald Trump is expected to discuss military options ​on Iran.

Brent crude futures climbed $2.01, or 1.84%, to $111.27 a barrel by 0432 GMT, but were ​off the $112 they had touched earlier for their highest since May 5.

U.S. West Texas ⁠Intermediate crude stood at $107.75 a barrel, up $2.33, or 2.21%, after a rise to $108.70, its highest since April ​30. The front-month June contract expires on Tuesday.

Both contracts gained more than 7% last week as hopes dimmed ​for a peace deal to end ship attacks and seizures around the key waterway of the Strait of Hormuz.

Last week's talks between Trump and Chinese President Xi Jinping ended without an indication from the world's top oil importer that it would ​help resolve the conflict unleashed by the U.S.-Israeli attacks on Iran.

Drone attacks on the UAE and Saudi Arabia ​and rhetoric from the United States and Iran raised concerns of an escalation in the conflict.

"These drone strikes are a ‌pointed ⁠warning - renewed U.S. or Israeli strikes on Iran could trigger more proxy attacks on Gulf energy and critical infrastructure by Iran or its regional proxies," IG market analyst Tony Sycamore said.

Reuters