The price of Brent crude oil, the global oil benchmark, rose by 3.37 percent to $100.54 a barrel on Thursday.
US West Texas Intermediate also increased by 3.31 percent to $93.31 per barrel.
Oil price had plunged on Monday to $96 a barrel after United States President Donald Trump, said he would postpone any military strikes against Iranian power plants and energy infrastructure for five days.
According to Reuters, the new price hike development comes on concerns that the prolonged conflict in the Middle East stoked concerns over further supply disruptions.
Iran is still reviewing a US proposal to end the war, after Turkey, Egypt, and Pakistan took the lead in efforts to broker a peace deal.
Karoline Leavitt, White House press secretary, said Trump will hit Iran harder if Tehran fails to accept that the country has been “defeated militarily”.
The conflict has halted shipments through the Strait of Hormuz, which typically carries about one-fifth of the world’s crude oil and liquefied natural gas (LNG) supply.
On March 13, the International Energy Agency (IEA) said the war is creating the largest supply disruption in the history of the global oil market.
Petrol prices in Nigeria rose further to record levels on Monday as the Middle East rages on.
