Staff Reporter: Oil prices rose as markets reopened Monday following weekend reports that the United States had hardened its negotiating terms with Iran to end the Middle East war.

US benchmark West Texas Intermediate gained 2.5 percent to $89.60 a barrel. Brent North Sea crude, meanwhile, was trading around $93.16 a barrel for August delivery, a rise of about 2.2 percent from Friday's close.

The increase follows a week where crude prices dropped over 11 percent amid hopes that an imminent peace agreement would lead to the reopening of the Strait of Hormuz, through which a significant portion of the global oil supply transits.

Over the weekend, however, The New York Times and other US media reported US President Donald Trump had sent back a new version of a possible memorandum of understanding to Tehran with several tightened negotiating points.