Oil prices have jumped $3 a barrel as the United States and Iran failed to agree to a peace proposal drafted by Washington while the Strait of Hormuz remained largely closed, keeping global energy supplies tight, according to Reuters.

Brent crude futures has climbed $3.18 or 3.14 per cent to $104.47 a barrel.

US West Texas Intermediate was at $98.51 a barrel, up $3.09, or 3.24pc, after settling 0.64pc higher in the previous session.