New york: Oil prices climbed about 1 percent at settlement on Monday, buoyed by investor confidence in a possible US interest rate cut and prospects for a peace agreement to end the war between Moscow and Kyiv, which could ease sanctions on Russia, a major oil producer.

According to Qatar News Agency, Brent crude futures rose 81 cents, or 1.29 percent, to $63.37 a barrel, while West Texas Intermediate gained 78 cents, or 1.34 percent, to $58.84. This increase comes after both benchmarks had closed last Friday at their lowest levels since Oct. 21.

The potential for a US interest rate cut has stirred optimism among investors, suggesting a boost in economic activity and consequently, oil demand. Additionally, the possibility of a peace agreement between Moscow and Kyiv could lead to an easing of sanctions on Russia, potentially stabilizing global oil supplies.