Oil prices climbed more than $5, as President Donald Trump said the United States would keep up attacks on Iran without committing to a specific timeline to end the war, fanning investor fears about sustained disruptions to supply.

Brent crude futures rose $6.33, or 6.3 per cent, to $107.49 per barrel by 0407 GMT.

US West Texas Intermediate crude futures were up $5.28, or 5.3pc, to $105.40 per barrel.

Markets are reacting to the fact that “no clear mention of ceasefire or diplomatic engagement,” figured in the speech, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“If tensions intensify or maritime risks increase, oil could test fresh highs as markets price in potential supply disruptions.”