Oil prices climbed further on Monday, with Brent crude set for its biggest monthly gain on record after Yemen’s Houthi forces carried out their first attacks on Israel, broadening the Middle East conflict linked to the United States, Israel, and Iran.

Brent crude futures rose $2.43, or 2.16 per cent, to $115 a barrel by 03:42 GMT, after a 4.2 per cent gain on Friday.

U.S. West Texas Intermediate climbed $1.86, or 1.87 per cent, to $101.50 a barrel, following a 5.5 per cent increase in the prior session.

U.S. President Donald Trump said the United States and Iran have been holding talks “directly and indirectly” and described Iran’s new leadership as “very reasonable,” even as additional U.S. troops were sent to the region.

At the same time, the Israeli military reported conducting strikes deep inside Iran, including on government‑linked infrastructure around Tehran.

Brent crude has surged 59 per cent this month, marking its sharpest monthly rise, surpassing gains seen during the 1990 Gulf War, after the conflict with Iran effectively closed the Strait of Hormuz, a vital route for a fifth of the world’s oil and gas.

Since the war began on February 28 with U.S. and Israeli strikes on Iran, fighting has spread across the Middle East.

On Saturday, Yemen’s Iran-aligned Houthis launched their first attacks on Israel, heightening concerns over shipping lanes near the Arabian Peninsula and the Red Sea.

Saudi crude exports rerouted from the Strait of Hormuz to the Red Sea’s Yanbu port hit 4.658 million barrels per day last week, according to analytics firm Kpler.