Oil prices climbed above $100 a barrel as the US Navy prepared to block ships to and from Iran via the Strait of Hormuz, a move that could restrict Iranian oil exports, after Washington and Tehran failed to reach a deal to end the war.

Brent crude futures rose $6.96, or 7.3pc, to $102.16 a barrel by 0430 GMT after settling 0.75pc lower on Friday.

US West Texas Intermediate was up $8.12, or 8.4pc, at $104.69 a barrel following a 1.33pc loss in the previous session.

“The market is now largely back to conditions before the ceasefire, except now the US will block the remaining up to 2 million barrels per day Iranian-linked flows through the Strait of Hormuz as well,” said Saul Kavonic, head of energy research at MST Marquee.