Oil Climbs Amid Mideast Angst

Iran responded to the new sanctions by announcing on Sunday that it will reduce its cooperation with nuclear inspectors from the International Atomic Energy Agency. It also reiterated that it has no intention of suspending its atomic plans.

Also supporting energy prices were reports that various Australian oil and gas companies are temporarily shutting in crude oil production from oil fields in Western Australia ahead of the arrival of cyclone Kara. Roughly 160,000 barrels per day have been taken off line, according to analysts at Barclays Capital.

Energy stocks finished the trading session mostly higher on the back of the higher commodity prices. The CBOE Oil Index climbed 0.8% to 657.82.

ConocoPhillips (COP Quote) advanced 0.5% to $69.56. Chevron (CVX Quote) gained 1% in the session to $74.40, and Exxon Mobil(XOM Quote) finished 0.6% ahead at $75.45.

Elsewhere, energy-investment firm Tortoise Energy Infrastructure (TYG Quote) was downgraded by Ferris Baker Watts to neutral from buy, and its shares fell 0.9% at $38.58.

Tesoro Petroleum (TSO Quote) was downgraded by Bear Stearns to peer perform from outperform, and by Deutsche Securities to sell from hold. Tesoro's stock was down 1.4% at $99.46.