Oil prices climbed more than 2% on Monday as investors reassessed expectations for a breakthrough in US-Iran negotiations, with renewed regional tensions highlighting the fragility of efforts to secure a broader peace agreement and restore stability to Middle East energy supplies.

Brent crude futures rose $1.93, or 2.1%, to $93.05 a barrel, while US West Texas Intermediate crude gained $2.17, or 2.5%, to $89.53 a barrel in early Asian trading, a Reuters report said.

The gains came as market optimism over a potential US-Iran agreement faded, with traders increasingly questioning whether Washington and Tehran can reach a deal capable of reducing geopolitical risks that have disrupted oil flows and shipping through the Gulf.

A tentative understanding reportedly negotiated between US and Iranian officials still awaits political approval, but recent military developments across the region have underscored the challenges facing diplomacy and tempered hopes for a near-term breakthrough.

While fighting along the Israel-Lebanon border contributed to the latest bout of uncertainty, analysts said the broader focus remains on whether Washington and Tehran can translate ceasefire arrangements into a lasting political settlement.

Israeli Prime ​Minister Benjamin Netanyahu has ordered troops to move further into Lebanon in the battle against the Iranian-backed Hezbollah militant group, he said on Sunday, ‌despite a ceasefire announced more than six weeks ago, Reuters said.