President Trump on Monday explicitly linked the actions of Yemen's Houthi rebels to the group's main benefactor, Iran, warning Tehran would “suffer the consequences” for further attacks by the group.

President Donald Trump announced he ordered the U.S. military to launch "decisive and powerful military action" against the Houthis in Yemen.

Oil prices edged higher on Monday after the United States vowed to keep attacking Yemen's Houthis until the Iran-aligned group ends its assaults on shipping while Chinese economic data fuelled hopes for higher demand.

Oil futures climbed on Monday, finding support after the U.S. over the weekend launched U.S. strikes on Houthi rebels in Yemen, raising the risk of disruptions to oil flow in the region.

Oil prices were up nearly 1 per cent on Monday after the US bombed Yemen's Houthis for a second night, warning of an “unrelenting” attack on the militant group, and as China announced stimulus plans to boost its tepid economy.