Oil jumps more than 2% after US attack on Iran's Larak island

Negotiations to end the conflict are at an impasse while mediators work to reopen the Strait of Hormuz, through which a fifth of the world's oil flowed before the war began at the end of February.

U.S. Treasury Secretary Scott Bessent told Reuters on Sunday that the U.S. is likely to issue new secondary sanctions weekly on Iran, with the aim of cutting the Islamic republic off entirely from the dollar-based financial system.

Brent and WTI are set to post small declines in August after falling more than 4% last week, in what was their first weekly decline in three.

While the path to a deal to reopen the strait is elusive, increases in oil flows through the Hormuz strait kept concern over supply disruption in check, ANZ analysts said in a client note.

The number of visible commodity vessels that sailed through the Strait of Hormuz over the weekend dropped to five a day, shipping data showed on Monday, reflecting caution among companies wary of attacks on ships.