At the beginning of Asian trading on Monday, there was a significant increase in oil prices due to fresh attacks by Israel and Iran that took place on Sunday. These new developments have raised fears about a possible escalation of the conflict, which could result in a broader regional war and the potential disruption of oil exports from the Middle East.

Brent crude futures rose $2.37, or 3.2%, to $76.60 a barrel, while US West Texas Intermediate crude climbed $2.39, or 3.3%, to $75.37. They surged more than $4 earlier in the session.

Both benchmarks settled 7% higher on Friday, having surged more than 13% during the session to their highest levels since January.

The latest exchange of strikes between Israel and Iran resulted in civilian casualties and intensified fears of a broader regional conflict, with both militaries urging civilians on the opposing side to take precautions against further strikes.

German Chancellor Friedrich Merz said he hoped a meeting of the Group of Seven leaders convening in Canada on Sunday would reach an agreement to help resolve the conflict and keep it from escalating.

Meanwhile, Iran has told mediators Qatar and Oman that it is not open to negotiating a ceasefire while it is under Israeli attack, an official briefed on the communications told Reuters on Sunday, as the two foes launched fresh attacks and raised fears of a wider conflict.