TOKYO, Japan (AFP) — Oil prices rose as markets reopen today following weekend reports that the United States had hardened its negotiating terms with Iran to end the Middle East war.

United States (US) benchmark West Texas Intermediate gained 2.5 per cent to $89.60 a barrel. Brent North Sea crude, meanwhile, was trading around $93.16 a barrel for August delivery, a rise of about 2.2 per cent from Friday’s close.

The increase follows a week where crude prices dropped over 11 per cent amid hopes that an imminent peace agreement would lead to the reopening of the Strait of Hormuz, through which a significant portion of the global oil supply transits.