Brent crude extended gains to 5% to trade above $105 per barrel on October 8 in its biggest single-day surge since September 11 on persistent worries about supply from the Middle East amid an increase in attacks on shipping in the Gulf and the Strait of Hormuz, while the US cut output as a hurricane menaced offshore production.
Brent crude futures were up $5, or 4.99%, at $105.20 a barrel by 1041 GMT for their highest since September 29. US West Texas Intermediate (WTI) crude gained $4.47, or 5.06%, to $92.75, its highest since October 2.
IG Chief Market Analyst Chris Beauchamp said the pending US storm along with an Axios report that Washington was preparing to resume major combat operations against Iran were keeping prices above $100 a barrel.
"The US is probably attempting to pile on the pressure in a bid to bring Iran to the table, but we can't discount the possibility of a new round of strikes. Investors certainly don't seem to be taking any chances."
Oil prices are also gaining on supply curtailments as a hurricane moves toward offshore production areas in the US, the world's biggest oil producer, causing companies to shut their platforms.