Oil prices surged more than two percent on Friday after an Iranian tanker was hit by suspected missile strikes in Saudi Arabia, sparking fresh supply concerns in the already-tense Gulf region.
The National Iranian Tanker Company, which owns the ship, said the hull of the Sabiti suffered two separate explosions off the Saudi coast, adding they were "probably caused by missile strikes".
The news sent Brent surging 2.3 per cent to USD 60.46 at one point, while West Texas Intermediate jumped 2.1 per cent to USD 54.69.
Both later eased back but investors remain on edge as the explosions come just weeks after two of Saudi Arabia's biggest oil installations were hit in blasts that briefly wiped out five percent of global production, causing a record rise in prices.
They will also revive concerns about the security of the world's crude supplies as tensions in the tinderbox Gulf are already high, with Riyadh and the United States accusing Iran of being behind last month's attacks.
"The explosion points to potential geopolitical risks and that has once again surprised the market to the upside," Will Sungchil Yun, a commodities analyst at HI Investment & Futures Corp., told Bloomberg News.
"It still remains to be seen whether prices will keep rising as investors are putting their focus on (China-US) trade talks and the gains won't last long if the negotiations result in a no-deal."
"Investors are starting to believe there is light at the end of the... tunnel as hope springs eternal."
After hours of talks regarding the vexed question of Northern Ireland, the two issued a joint statement that said: "Both continue to believe a deal is in everybody's interest. They agreed that they could see a pathway to a possible deal."