Brent crude surged as much as 1.9% to $73.39 a barrel in early trading, while West Texas Intermediate hovered near $70, driven by fresh concerns over shipping security in the Middle East.
The price spike followed reports that a tanker was hit during renewed military strikes between the United States and Iran.
The incident reignited fears that the Strait of Hormuz could face renewed disruption, a critical chokepoint for global oil supplies.
Despite the escalation, market participants are weighing the possibility of a de-escalation, with reports suggesting the two nations are close to halting hostilities.
This volatility comes against a backdrop of nearly four months of conflict.
Earlier this week, oil prices had already climbed as military strikes heightened regional instability, even as diplomatic channels remained open.