Benchmark Brent crude futures rose more than 2% to touch a three-week high of US$107.97 a barrel.

S&P 500 futures eased by a modest 0.3%, after US stocks notched a record closing high at the end of last week. The dollar was higher on major currencies, although not by much, leaving the euro down 0.15% to US$1.1706 and the yen marginally weaker at 159.53 per dollar.

Although a ceasefire has paused full-scale fighting in a war begun by US-Israeli strikes on Iran two months ago, no agreement has been reached on terms to open the Strait of Hormuz which has been all but closed, sending energy prices soaring.

US president Donald Trump cancelled a trip to Islamabad by two envoys for talks on the weekend, even as Iran’s foreign minister has continued to shuttle between mediating countries.

“If they want to talk, they can come to us, or they can call us. You know, there is a telephone. We have nice, secure lines,” Trump told “The Sunday Briefing” on Fox News.

“They know what has to be in the agreement. It’s very simple: They cannot have a nuclear weapon, otherwise there’s no reason to meet,” Trump said.