Washington DC - The Brent oil price reached nearly $107 a barrel Monday after Yemen's Iran-backed Houthi movement launched strikes on Saudi Arabia and doubts rise following President Donald Trump's "energy ceasefire" claims.
Doubts about Trump's claim of an "energy ceasefire" between Ukraine and Russia, following his surprise announcement of a deal to buy diesel from Moscow, further unsettled investors.
After a mixed showing for stocks across Asia, Europe's main indices rose in afternoon deals, with the car sector lifted by a deal to limit Chinese imports of hybrids as part of an effort to avert a trade war.
Wall Street's main indices opened mixed, with the tech-heavy Nasdaq Composite slipping after reaching record highs last week.
The dollar was higher against most currencies ahead of key US inflation data this week, which investors will look at through the prism of whether it will push the Federal Reserve to raise interest rates again in a bid to tame elevated inflation.
"Oil remains well bid above $100 after strikes on Saudi Arabia's Riyadh airport over the weekend, whilst efforts to secure a Russia-Ukraine energy truce were muddy," said Neil Wilson, a strategist at Saxo UK.
Meanwhile, "a US deal to purchase some Russian diesel is a drop in the ocean," he added.
Russia on Monday refused to say whether an agreement had been reached with Ukraine to halt attacks on energy infrastructure, a day after Trump sowed confusion with his unilateral announcement of an "energy ceasefire."
Trump also called for Ukraine to "get a new leader" after Volodymyr Zelensky slammed Washington's easing of Russian diesel sanctions, as the US president grapples with high fuel prices ahead of midterm elections in the world's biggest economy.
Saudi Arabia's energy minister acknowledged meanwhile that the kingdom's infrastructure and resilience had been tested following a wave of deadly attacks by Yemen's Houthis.
The weekend strikes marked a sharp escalation in the Yemen war, where Saudi Arabia has long supported the internationally recognized government.
Also in view this week is the start of the corporate earnings season, with banking giants JP Morgan, Goldman Sachs and Bank of America due to report on Tuesday.