Global oil prices settle at one-month high despite new Iran ceasefire proposal, as blockade on Saudi Arabia by Yemen's Houthis keeps market on edge

By Isabel Wang and Myra P. Saefong

Iran's Houthi allies in Yemen declared a maritime embargo against Saudi Arabia on Monday

Oil prices settled at one-month highs in volatile trading on Monday as traders weighed escalating geopolitical tensions following a fresh barrage of strikes across the Middle East over the weekend against reports of a new ceasefire proposal between the U.S. and Iran.

Prices had taken a dive into the red on Monday early morning after a report of a 10-day ceasefire proposal between the U.S. and Iran sparked a sharp decline in energy prices, but oil later gave back those losses after Houthi militants in Yemen declared a maritime embargo on Saudi Arabia.

Brent crude for September delivery (BRN00) (BRNU26), the global benchmark, gained 1.3% to settle at $89.22 a barrel, its highest settlement value since June 11, after falling to around $86.12 in morning action. It had also risen to an intraday high of $91.42 overnight, according to FactSet data.