Crude prices remained on track for significant weekly gains following some of the most intense attacks on shipping routes since the conflict began.
Brent and US West Texas Intermediate (WTI) crude were both set for strong weekly increases, rising more than 11% during the week as markets reacted to escalating hostilities and growing concerns over prolonged supply disruptions.
Separately, Brent crude earlier climbed to $109.98 a barrel, its highest level since early May, before easing slightly after reports emerged that Iran and Oman were holding talks with Persian Gulf states on arrangements for commercial shipping through the Strait of Hormuz.
The Financial Times reported that Persian Gulf foreign ministers are expected to meet their Iranian counterpart on Monday to discuss a possible framework aimed at managing maritime traffic through the strategic waterway.
Meanwhile, oil prices had surged above $100 a barrel earlier in the week after the United States attacked five Iranian tankers, marking one of the most intense confrontations between Washington and Tehran in months.
The strikes highlighted the lack of meaningful de-escalation as the conflict approached its seventh month and intensified concerns over further risks to regional energy flows.
In a related development, concerns over additional supply disruptions grew after Yemen was reported to have taken control of the port city of Mocha, strengthening its position near the Bab el-Mandeb Strait following a battle with US-backed Saudi-funded mercenaries.