Oil prices saw choppy trading in Asia on Monday morning as tensions in the Middle East continued to unsettle markets.
Brent crude rose above $110 a barrel after Donald Trump threatened to destroy critical infrastructure in Iran unless the Strait of Hormuz reopened.
The gains were later eased after a report of US-Iran talks over a potential ceasefire.
Before lunchtime in Asia, Brent crude was 0.7% higher at $109.80, while US-traded oil was broadly flat at $111.62.
Oil and gas shipments from the Middle East have been severely disrupted since Iran shut down the the strait following US and Israeli strikes.
Taking to his Truth Social site, the US president claimed Iran will 'face Hell' if the strait doesn't reopen before his new deadline.
He said: “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the F***in’ Strait, you crazy b******s, or you’ll be living in Hell — JUST WATCH! Praise be to Allah.”
On Saturday he had given Iran 48 hours to comply “before all Hell will reign down on them. Glory be to GOD!” but then appeared to set a new deadline on Sunday afternoon, posting simply: “Tuesday, 8:00 P.M. Eastern Time!”