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Oil prices rallied on Monday amid heightened supply concerns after the UAE said on Sunday that four cargo vessels were subjected to "sabotage operations" off the coast of Fujairah, one of the world's largest bunkering hubs.

Benchmark Brent crude jumped 1.7 percent to $71.82 a barrel while U.S. West Texas Intermediate (WTI) futures were up 1.5 percent at $62.59 per barrel.

Reacting to reports of explosions in Fujairah, Saudi Energy Minister Khalid al-Falih said in a statement that the attack did not lead to any casualties or an oil spill but caused significant damage to the vessels' structures,

One of the two Saudi vessels attacked was on its way to be loaded with Saudi crude from Ras Tanura port for delivery to state-owned Saudi Aramco's customers in the United States.

Iran's foreign ministry spokesman called the incidents "worrisome and dreadful" and asked for an investigation into the matter.

Traders also kept an eye on the U.S.-China trade developments after the U.S.-China trade talks ended without an agreement and U.S. President Donald Trump defended his tariff policy, saying we are right where we want to be with China.