Oil futures extended their rally on Monday, hitting their highest levels since November 2014, as U.S. sanctions on Iran come into force and a North American trade deal fosters growth.
The United States and Canada forged a deal on Sunday to salvage the North American Free Trade Agreement (NAFTA) as a trilateral pact with Mexico, rescuing a three-country, $1.2 trillion open-trade zone that had been about to collapse.
"I think the NAFTA 2.0 deal helps prices — it takes away from some of the concerns that the trade war was going to impact growth," said Phil Flynn, an analyst at Price Futures Group in Chicago. "This increases the growth prospects not only for Canada and the U.S., but for North America as a whole."
Benchmark Brent crude oil futures rose $1.57, or 1.9 percent, to $84.30 at 1:21 p.m. ET, having touched their highest in almost four years at $84.73.
U.S. West Texas Intermediate (WTI) crude futures were up $1.66, or 2.3 percent, at $74.91 a barrel, and hit their highest since July.