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Oil prices rose on Monday after confirmation that the United States and China plan to hold talks later this month, easing fears of renewed trade frictions that had driven crude benchmarks to five-month lows late last week.

Brent crude settled 59 cents higher, or 0.9%, at $63.32 a barrel. 

WTI gained 59 cents, or 1%, to close at $59.49 a barrel. Both contracts had dropped around 4% on Friday after Washington signalled potential tariff hikes and uncertainty over the scheduled meeting.

The reassurance that dialogue remains on track helped stabilise sentiment after a volatile week dominated by trade concerns. Analysts said the near-term direction hinges on the outcome of the talks, with any setback likely to reignite demand worries.

Gains were capped by easing geopolitical risks in the Middle East following a US-brokered ceasefire, which saw the release of remaining hostages and raised hopes for lasting peace in the region. Market participants said the truce reduced the geopolitical premium in oil prices, though sustained calm will be needed to confirm the trend.

Written: Aiman Haikal