Oil prices continued to climb toward $80 a barrel Monday over fears that a wider war in the Middle East will disrupt supplies from the region.
Brent crude futures rose $1.09, or 1.4%, to $79.14 a barrel, Reuters reported.
West Texas Intermediate crude futures increased even more and were up $1.15, or 1.55%, to $75.53 a barrel.
"Brent crude is back to challenge $80, with activity in the options market showing increased demand for hedging the risk of further gains amid worries about a minor or, in the worst case, major supply disruption from the Middle East," Ole Hansen, head of commodity strategy at Denmark's Saxo Bank, said in a note to investors.
Brent and WTI futures jumped more than 8% and 9%, respectively, last week, marking their biggest weekly spikes since early 2023.
That came after President Joe Biden suggested Thursday that Israeli officials were considering a strike against Iranian oil installations in response to Iran's Oct. 1 massive missile attack against Israel.
"We're in discussion of that," Biden told reporters, the Associated Press reported at the time.
Biden added, "I think that would be a little — anyway," without finishing his thought and also said he didn't expect Israel to act immediately, AP said.
Australia's ANZ Research downplayed the potential for such a strike, Reuters reported Monday.
"We see a direct attack on Iran's oil facilities as the least likely response among Israel's options," ANZ Research said.
Israel's military said Saturday that it was planning a "serious and significant" response to the Iranian missile barrage, according to the Times of Israel.
