Oil prices jumped on Thursday as the fallout from the US-Iran conflict appeared to spread to the Red Sea.
Brent crude futures rose as much as 3.50% to US$97.79 a barrel, moving closer to the US$100 mark for the first time since May.
West Texas Intermediate also climbed, rising as much as 4% to US$89.85, its highest level in more than a month.
The move came after the US launched a twelfth consecutive night of strikes against Iran. Markets were further unsettled by attacks on Saudi Arabian oil tankers in the Red Sea by the Iran-aligned Houthi movement in Yemen.
The attacks have raised concern that disruption could spread beyond the Strait of Hormuz and threaten another key global oil export route.
The renewed surge in crude prices adds to inflation concerns and keeps energy supply risks firmly in focus for investors.
Goldman Sachs Warns Brent Could Top US$120 in Bullish Scenario
Goldman Sachs analysts have warned that Brent crude could rise above US$120 a barrel by the fourth quarter if Middle East supply risks intensify.
The forecast was included in a note sent on Monday, according to Bloomberg. The US bank stressed that a move above US$120 is not its base case assumption.
However, the warning highlights growing concern that continued US-Iran hostilities and threats to key shipping routes could push oil prices sharply higher.
Brent has already risen strongly this month as traders price in the risk of disruption around the Strait of Hormuz and wider regional energy infrastructure.
