Brent crude dropped 3.9 per cent to $84 a barrel, while US crude fell 4.8 per cent to around $81 a barrel. The decline added to losses recorded on Friday, when Brent slipped 3.4 per cent and US crude shed 3.2 per cent.

The Strait of Hormuz, through which a significant share of the world's oil shipments pass, has effectively remained closed since the conflict erupted in late February. According to an Iranian lawmaker, some commercial vessels had been paying an average of about $2 million to transit the waterway.