Oil jumped about 2% in early Thursday trading after reports of fresh U.S. strikes on an Iranian military site.
Brent crude futures rose $1.90, or 2.02%, to $96.19 a barrel. The more active August contract gained $1.64, or 1.78%, to $93.89.
U.S. West Texas Intermediate futures were up $1.73, or 1.95%, at $90.41.
Both benchmarks had slipped more than 5% in the previous session on hopes of a U.S.-Iran deal.
The U.S. military launched strikes targeting a site believed to threaten forces and maritime traffic in the Strait of Hormuz.
"Oil supply remains constrained, and key sticking points have yet to be resolved," said ANZ commodity strategist Daniel Hynes.
U.S. crude oil stockpiles fell by 2.8 million barrels last week, the sixth straight weekly decline, according to API data.
