Brent crude futures rose $1.90, or 2.02%, to $96.19 a barrel by 0015 GMT, while the more active August contract gained $1.64 or 1.78%, to $93.89. The July contract is set to expire on Friday.
The U.S. West Texas Intermediate futures were up $1.73, or 1.95%, at $90.41.
Both benchmarks slipped more than 5% to touch their lowest in a month in the previous session on the possibility of a U.S.-Iran deal to end their war and reopen the Strait of Hormuz.
“Oil supply remains constrained, and key sticking points have yet to be resolved.”
Daniel Hynes, ANZ commodity strategist
The U.S. military launched new strikes in Iran targeting a military site that officials believed posed a threat to U.S. forces and commercial maritime traffic in the strait, a U.S. official told Reuters.
"Oil supply remains constrained, and key sticking points have yet to be resolved," ANZ commodity strategist Daniel Hynes said in a note.
In the U.S., crude oil stockpiles fell by 2.8 million barrels last week, the sixth straight week of declines, according to American Petroleum Institute data. Official inventory data from the U.S. Energy Information Administration are due on Thursday, a day later than usual due to the Memorial Day holiday on Monday.
Background
The recent U.S. military action in Iran underscores the ongoing geopolitical tensions that continue to influence oil markets. The Strait of Hormuz is a critical chokepoint for global oil shipments, and any disruption in this region can have significant implications for oil prices worldwide.
Looking ahead, market participants will be closely monitoring the outcome of U.S.-Iran negotiations and the upcoming U.S. Energy Information Administration's inventory data for further direction.
