Brent surged above $76 per barrel on Wednesday and was up more than about 6% so far this week, after the US military carried out fresh air strikes in Iran and revoked a waiver that had allowed the country to sell crude on global markets.
The actions followed a series of recent attacks on vessels transiting the Strait of Hormuz, including a Qatari LNG carrier and a Saudi oil tanker.
The renewed conflict has put the interim US-Iran peace agreement at risk and raised the prospect of fresh disruptions to global energy supplies by deterring shipowners and regional producers from using the vital waterway.
The escalation marks a sharp reversal from earlier expectations of a supply glut, after OPEC+ increased production quotas and Middle Eastern producers moved to ramp up output.