Oil prices advanced, with Brent hovering around a five-month high as traders priced in a geopolitical risk premium from Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf.

Brent crude futures climbed 55 cents, or 0.50 per cent, to $110.10 a barrel, after rising as high as $110.70 a barrel in the previous session to their highest since May 20.

The US West Texas Intermediate crude (WTI) contract for November delivery, set to expire on Tuesday, was up 0.24pc to $103.91. The more-active December contract rose 39 cents, or 0.40pc, to $98.93.

“Oil prices remain well-supported … This suggests the market is pricing in a significant risk premium, given the situation’s volatility,” ING analysts said in a note.

“However, if flows continue uninhibited despite the geopolitical environment, the risk premium would likely erode slowly. Clearly, there are no signs of this yet.”