Brent crude futures settled up $1.65, or 1.8%, at $93.10 a barrel, while US West Texas Intermediate (WTI) crude futures rose $1.83, or 2%, to close at $90.03.

Prices initially jumped by around three dollars during afternoon trading after President Trump reiterated his warning of further military actions against Iran. The warning followed an overnight exchange of fire between the two sides, marking one of the most serious escalations since the April ceasefire.

However, crude gains eased later in the session after Trump announced that the US military had secretly escorted tankers carrying more than 100 million barrels of oil safely through the Strait of Hormuz.