Oil prices surged more than 2% on Thursday after Iran's Revolutionary Guards targeted a U.S. airbase in response to a U.S. attack in the port city of Bandar Abbas.
The escalation of tensions between the two countries has led to increased uncertainty and volatility in the global oil market.
Brent crude futures LCOc1 rose $2.34, or 2.48%, to $96.63 a barrel by 0701 GMT, while the more active August contract LCOc2 gained $2.24 or 2.43%, to $94.49.
The July contract is set to expire on Friday, which may provide some relief for traders looking for price direction.
US West Texas Intermediate futures CLc1 were up $2.26, or 2.55%, at $90.94.
Both benchmarks slipped more than 5% in the previous session due to hopes of a U.S.-Iran deal to end their war and reopen the Strait of Hormuz.
The Islamic Revolutionary Guard Corps warned that any repeat of what they called aggression would draw a 'more decisive' response.
The U.S. military launched new strikes in Iran targeting a military site that officials believed posed a threat to U.S. forces and commercial maritime traffic in the Strait of Hormuz.
The fragility of the current 'no peace, no war' situation between the United States and Iran highlights the ongoing uncertainty in global oil markets.
The conflict between the US and Iran may continue, causing oil prices to remain high.
