Brent crude for December LCOZ7, +1.31% gained 65 cents, or 1.1%, to $57.82, also ending around its highest level since late September. 78 per barrel, slightly down from their last settlement, but 2 percent higher than last Friday and nearly a quarter above mid-June levels.
Brent crude futures rose 1.08 per cent to $57.79 a barrel while U.S. benchmark West Texas Intermediate (WTI) prices lifted 0.82 per cent to $51.87 a barrel.
Oil markets jumped on Monday on concerns over potential renewed USA sanctions against Iran as well as conflict in Iraq, while an explosion at a US oil rig and reduced exploration activity supported prices there.
The Iraqi government explained that military-affiliated troops had controlled a large area in Kirkuk, including oil fields, while Iraqi Kurdish Regional administration (IKBY) argued that it was not true.
The Kurdistan region of Iraq has shut down some 350,000 barrels per day of production from major fields Bai Hassan and Avana, Reuters reports.
After months of range-bound trading, during which oil cartel Opec-led supply cuts supported crude values - but rising USA output capped markets - prices have moved up significantly this month.
Goldman says in the case of Iran, there are likely no immediate impacts on oil flows and there remains high uncertainty on potential reintroduction of USA secondary sanctions.
U.S. President Donald Trump declined to certify Iran's submission over a nuclear deal, leaving Congress a couple of months to decide further action against Tehran.
Various analysts are also revising the oil price predictions as the global crude market continues to tighten. Birol said the rate of compliance by Opec and its partners in their targeted cutting of about 1.8-million bpd between January this year and March 2018 was about 86%. The cuts are likely to be shared again by non-OPEC members led by top oil producer Russian Federation, which lessened output joining OPEC from January.
The euro slumped 0.2 percent to $1.1798, while the dollar index .DXY rose 0.16 percent as investors repositioned following disappointing inflation data on Friday that sent the greenback lower.