Brent crude futures gained $3.21, or 3.1%, to $107.82 a barrel by 0340 GMT, while West Texas Intermediate futures rose $3.17, or 3.2%, to $103.22.
The latest escalation came after a drone attack forced Saudi Arabia to temporarily shut its East-West oil pipeline, a critical route that allows the kingdom to bypass the Strait of Hormuz and reroute exports to the Red Sea port of Yanbu.
The pipeline normally carries about 4 million barrels per day, equivalent to around 4% of global oil supply.
Saudi officials have not provided detailed information about the extent of the damage or how long the pipeline will remain out of service.
Three industry sources familiar with Saudi exports said Yanbu currently has enough inventories to maintain exports for only five to seven days.
Saudi Arabia also holds stocks at Egypt's Ain Sukhna and Sidi Kerir ports, but those reserves would eventually be depleted if the pipeline does not resume operations.
One source estimated repairs could take five to six weeks, while another said the pipeline could be repaired sooner and might partially resume pumping while work continues.
Meanwhile, a vessel in the Strait of Hormuz was struck by a projectile on Sunday, causing a fire and forcing its crew to evacuate, according to the British maritime security agency UKMTO.
One person was killed and four crew members were wounded aboard a commercial vessel that was struck off the coast, according to officials.
The disruption comes as oil flows through the Strait of Hormuz have fallen sharply due to a US aggression against Iran, with industry sources estimating current shipments at 6 million to 9 million barrels per day, compared with about 22 million barrels per day supplied by the region before the war.
Saudi Arabia's oil production has also declined significantly, falling to 6.2 million barrels per day in August from 10.9 million barrels per day in February, according to figures provided to OPEC.
The International Energy Agency said global oil supply is expected to decline by 5.7 million barrels per day this year, or about 6%.
Oil prices surged about 8% last week, moving above $100 a barrel for the first time since July, as disruptions across key energy routes intensified concerns over an already tightening global market.