Oil reaches 13-months highs amid rising tensions in Middle East

Oil prices rose to 13-month highs on Monday as worries of rising tensions in the Middle East incited fresh buying, while hopes for a U.S. COVID-19 stimulus aid and easing restrictions supported fuel demand.

Brent crude rose 1.8%, or $1.09, at $63.52 per barrel after rising to a session high of $63.76, its highest since Jan. 22 of last year.

U.S. West Texas Intermediate crude futures climbed 2.2%, or $1.28, at $60.75 per barrel. It hit $60.95 earlier in the session, its highest since Jan. 8, 2020. Oil prices rose nearly 5% last week.

The Saudi-led coalition in Yemen intercepted and destroyed a drone laden with explosives that was fired by the Iran-aligned Houthi group toward the kingdom, raising fears of new tension in the Middle East. 

Oil prices rallied in recent weeks as supplies tightened amid production cuts implemented by OPEC and its allies.