Oil settles about 1pc higher

According to Business Recorder, oil futures closed Monday about 1 percent higher as fresh attacks on Saudi energy assets and ships in the Middle East heightened supply worries. Both main crude contracts surged nearly 5 percent intraday before paring gains after US President Donald Trump said Iran was keen on a deal with Washington. Brent gained USD1.07, a 1.0 percent rise, to close at USD105.68 a barrel, while US West Texas Intermediate (WTI) crude climbed USD1.34, or 1.3 percent, to end at USD101.39.

Yemen's Houthis targeted a Saudi air base at Khamis Mushait with a barrage of missiles and drones, while Gulf Arab governments delayed scheduled negotiations with Iran. Riyadh blamed Iran-aligned militants in Iraq for a separate strike that disabled the east-west pipeline, which carries Gulf exports around the blockaded Strait of Hormuz. That attack put up to 4 percent of global oil supply at risk. Ship-tracking data showed Hormuz commodity vessel crossings fell to single digits daily over the weekend, well below a 10-day average of 14.

Crude was also weighed by expectations that the Federal Reserve will raise rates at Wednesday's meeting, with investors anticipating a move to a 3.75 to 4.00 percent band and further tightening afterward. Separately, Trump said Russia and Ukraine had agreed not to strike each other's energy targets. Higher borrowing costs can slow economic growth and dampen energy demand.