Oil prices climbed Monday as hopes for a U.S.-Iran resolution faded. Peace talks in Pakistan stalled after Iranian envoys departed before meeting U.S. officials. The deadlock prolongs disruptions in the Strait of Hormuz, a waterway that handles one-fifth of global oil supplies.
Brent crude rose over 2.5% to trade above $108 per barrel. Goldman Sachs increased its Q4 Brent price forecast to $90 from $80 per barrel. The bank cited the diplomatic impasse and lower Persian Gulf production for the revised outlook.