Oil prices spiked 4% on Thursday after Iran declared it would not reopen the Strait of Hormuz as long as a US naval blockade continues, despite a recent ceasefire extension.
At around 0025 GMT, US benchmark West Texas Intermediate (WTI) jumped 4.06% to $96.73 per barrel, while international benchmark Brent North Sea crude rose 3.62% to $105.63 before both eased slightly.
Prices have been climbing since Israel and the US attacked Iran on February 28, and uncertainty over a potential resumption of war has kept upward pressure on oil markets. US President Donald Trump extended the ceasefire on Tuesday to allow more time for Pakistani-brokered peace talks, saying he wanted to give Iran room to negotiate.
Iran welcomed Pakistan's mediation efforts but offered no further comment on Trump's announcement. The situation remains tense, with the market reacting to every hint of instability in the region.