Brent crude futures climbed 4.4% to $87.81 a barrel, with WTI gaining 4.3% to $82.69, as energy markets rallied ahead of the Federal Reserve's upcoming policy announcement.
The sharp move in oil prices coincided with a broader risk-on sentiment that also pushed the US dollar to levels close to a five-week high.
The dollar's strength reflects investor positioning ahead of the central bank's decision, with market participants closely monitoring signals on the future path of interest rates.
Traders are digesting fresh inflation data and preparing for potential shifts in monetary policy that could impact both currency valuations and commodity demand.
This development follows a period of heightened volatility in global markets, where the interplay between energy prices and monetary policy expectations has become increasingly pronounced.
The simultaneous rise in oil and the dollar suggests investors are balancing inflation hedges against rate-sensitive assets.