Oil prices held near two-week highs on Monday after rising 6% last week, as geopolitical tensions escalated between Western powers and major oil producers Russia and Iran, raising the risk of supply disruptions.

Brent crude futures rose 13 cents, or 0.2%, to $75.30 a barrel by 0115 GMT, while U.S. West Texas Intermediate crude was at $71.38 a barrel, up 14 cents, or 0.2%.

Both contracts last week posted their biggest weekly gains since late September to reach their highest settlements since Nov. 7 after Russia fired a hypersonic missile over Ukraine in a warning to the United States and Britain after Kyiv's attack on Russia using U.S. and British weapons.

"Recent exchanges suggest the war has entered a new and dangerous phase, raising concerns about supply disruptions," ANZ analysts led by Daniel Hynes said in a note.

In addition, Iran responded to a resolution passed by the U.N. nuclear watchdog on Thursday by ordering actions such as turning on new, advanced centrifuges used in uranium enrichment

"The IAEA's condemnation and Iran's response raise the possibility that Trump will seek to impose sanctions on Iran's oil exports when he comes to power," Vivek Dhar, a commodity strategist at Commonwealth Bank of Australia (OTC:CMWAY) said in a note.

The sanctions could knock out about 1 million barrels per day of Iran's oil exports, about 1% of global oil supplies, he said.Iran's foreign ministry said Sunday it would hold talks on its disputed nuclear program with three European countries on Nov. 29.

Investors are also focused on rising crude demand in China and India, the world's largest and third-largest oil importers, respectively.

China's crude imports rose in November as lower prices boosted demand for stocks while Indian refineries increased crude output by 3% annually to 5.04 million barrels per day in October, boosted by fuel exports.

Source: Investing.com