Oil prices climbed sharply during early Asian trading on Monday, building on strong gains from the previous week as geopolitical tensions between the United States and Iran showed little sign of easing.

Shares were mixed in Asia and Tokyo's Nikkei 225 index hit a fresh record Monday after U.S. stocks ended last week with new highs. The price of oil gained more than $1 as talks on ending the war with Iran hit more snags.

Oil rose in Asia amid rising tensions related to the Strait of Hormuz, while equities in the region advanced gained tracking Wall Street’s gains on Friday.

U.S. stock-index futures were mixed on Sunday as oil prices rose, ahead of a key week for Wall Street following record highs for the S&P 500 and the tech-heavy Nasdaq.

Our neighbors are our priority." Around a fifth of the world's crude oil and liquified natural gas (LNG) usually passes through the Strait of Hormuz. Oil prices rose on Monday morning in Asia after plans for a second round of peace talks between the US and Iran stalled again.

Planned peace talks in Islamabad scheduled for the weekend never happened after delegations from both the US and Iran pulled out.

Oil prices rose Sunday after an Iranian official warned that the Strait of Hormuz will “under no circumstances” return to its previous state.

Oil hasn't surged to $200 like some, including Trump, had expected. Business Insider spoke to energy market pros about what's kept a lid on prices.