World oil prices have surged after two laden tankers suffered suspected attacks in the Gulf of Oman off the Iranian coast.
New York futures were up as much as 3.9% news wire Bloomberg reported, while Brent crude futures were up 3.3%, or $2, according to Reuters.
West Texas Intermediate crude futures were up $1.41, or 2.7%, at $52.55 a barrel.
The hikes reverse a recent oil price decline driven by swelling US inventories and the trade row between the US and China.
Reports from the Gulf said that the laden tankers Front Altair and Kokuka Courageous suffered explosions, with one source describing the first as a 'torpedo' attack. Other sources suggested it could have been caused by a magnetic mine.
Frontline, the owner of the Front Altair, saw its shares rise by NOK5.35, or nearly 8.5%, this morning to NOK68.75 on anticipation rates may rise as buyers scramble for cargoes.
Both ships have been evacuated and their crews are safe, sources said.
Last month, four vessels were damaged by explosions off Fujairah just outside the Strait to Hormuz.
Many pointed the blame at Iran and the rebels they back who are fighting in Yemen, but the official investigation stopped short of that conclusion.
The Strait of Hormuz is critical to flows of oil, gas and products from Gulf producers.
US crude stockpiles climbed to the highest level since 2017 last week, according to the US Energy Information Administration.
