Oil prices rose more than 2% on Monday, with Brent crude futures touching a three-week high of $107.97 a barrel in early Asia trade as stalled US-Iran talks unsettled markets.
S&P 500 futures slipped 0.3% after the cash index closed at a record high on Friday. The dollar edged higher, leaving the euro down 0.15% at $1.1706 and the yen weaker at 159.53 per dollar.
Markets focused on disruption around the Strait of Hormuz, a key energy chokepoint, even as a ceasefire froze most fighting linked to the conflict triggered by US-Israeli strikes on Iran two months ago.
The average LNG price for June delivery into north-east Asia reached $16.70 per million British thermal units last week, nearly 61% above pre-war levels.
Goldman Sachs analysts raised their year-end Brent forecast from $80 to $90 a barrel, assuming Gulf exports normalise by the end of June.
Read: Iran Saudi Oil Threat Raises Fears of Gulf Conflict
“Non-linear price increases are likely if inventories drop to critically low levels,” Goldman Sachs analysts.
US President Donald Trump cancelled a planned trip to Islamabad by US envoys for talks over the weekend, while Iran’s foreign minister continued diplomatic travel through mediating countries.
Traders expect the supply shock to keep major central banks cautious this week, with the Bank of Japan expected to hold its short-term policy rate at 0.75% on Tuesday.
The Federal Reserve, European Central Bank and Bank of England also face rate decisions, while Microsoft, Alphabet, Amazon, Meta Platforms and Apple headline a heavy US tech earnings week.
