Oil prices rose sharply in Asia after plans for a second round of US-Iran peace talks were delayed again, increasing market uncertainty.
Brent crude increased 2.2% to $107.70 a barrel, while US-traded crude gained 2.1% to $96.40.
The rise followed comments from US President Donald Trump saying Washington had cancelled plans to send a team to Pakistan for negotiations with Iran.
Global energy markets remain under pressure because the Strait of Hormuz, a key shipping route, has effectively been closed after Iran threatened attacks on vessels in response to US and Israeli airstrikes.