Oil prices extended gains on Monday, rising nearly 2% as peace talks between the U.S. and Iran stalled while shipments through the Strait of Hormuz ‌remained limited, keeping global oil supplies tight.

Brent crude futures ​rose $2.16, or 2.05%, to $107.49 a barrel by 2346 GMT, the highest since April 7, and U.S. West Texas Intermediate was ⁠at $96.17 a barrel, up $1.77, or 1.88%.

Last week, Brent and WTI gained ​nearly 17% and 13%, respectively, the biggest weekly gains since the start ⁠of the war. Hopes of reviving peace efforts receded during the weekend when President Donald Trump scrapped a planned trip to Islamabad by his envoys Steve Witkoff and Jared ‌Kushner, even as Iranian Foreign Minister Abbas Araqchi arrived in Pakistan.

"This ​move puts the ‌ball squarely back in Iran’s court, and the clock is now ticking loudly," IG market analyst ‌Tony Sycamore said in a note, adding that Tehran may be forced to shut production at its aging oil fields when it runs out ⁠of storage capacity.

Tehran has largely closed ‌the strait while Washington ⁠has imposed a blockade of Iran's ports. Traffic through the Strait of Hormuz remained limited, ⁠with just ⁠one oil products tanker entering the Gulf on Sunday, shipping data from Kpler showed.

Goldman Sachs raised ‌its oil price forecasts for the fourth quarter to $90 a barrel for Brent crude and $83 for WTI citing reduced output from the Middle East.

"The economic risks ‌are larger ​than our crude ‌base case alone suggests because of the net upside risks to oil prices, unusually high refined product prices, products shortages risks, and the ​unprecedented scale of the shock," GS analysts led by Daan Struyven said in an April 26 note.