NEW YORK] Oil prices climbed nearly 3 per cent on Monday on supply concerns as producer group Opec+ decided not to accelerate plans to hike output and wildfires in Canada’s oil-producing province disrupted production.

A UN watchdog report indicates Iran has significantly increased its uranium enrichment to near weapons-grade levels, prompting reactions from Israel and the United States and escalating tensions over Iran's nuclear program.

Oil prices slipped as traders assessed the implications of diplomatic overtures on multiple fronts –including Russia-Ukraine peace talks and US-Iran nuclear negotiations – while a cautious outlook for China’s economy further dampened sentiment.

Oil prices settled lower on Wednesday, after Oman's foreign minister said a fresh round of nuclear talks between Iran and the U.S. would take place later this week.

A US media outlet reports that Israel may be poised to strike Iran’s nuclear sites and oil markets wince. In Washington, a Republican administration wonders if Tehran is more determined or deterred.