Brent crude briefly climbed more than 10 percent to above USD 82 a barrel before settling around USD 79, while WTI rose by roughly 7.2 percent.
Analysts at XTB said markets were increasingly factoring in a scenario where prices could test the USD 100 mark if the disruption persists.
At the heart of the concern is the Strait of Hormuz – the narrow waterway linking the Persian Gulf to the Arabian Sea through which roughly one-fifth of the world's oil and gas passes.
Iran's Revolutionary Guard announced that no vessels were permitted to enter the strait, and tracking data shows at least 150 tankers have halted on both sides.
Two ships were struck by missiles near the strait over the weekend, with an explosion reported near a third.
Some shipping operators are rerouting vessels around the Cape of Good Hope, while war-risk insurers have restricted or withdrawn coverage for the region.
In a bid to calm markets, OPEC+ announced an emergency decision to raise output by 206,000 barrels per day from April – well above the previously planned 136,000.
Analysts cautioned, however, that the physical availability of oil and the security of maritime supply routes matter more right now than any OPEC pledge.
Meanwhile, gold rose more than 2 percent as investors sought safe havens, with some analysts warning silver could also see sharp moves, though a swift de-escalation could trigger an equally rapid reversal across commodity markets.
Following Saturday's strikes by the US and Israel on targets in Iran, Tehran confirmed the deaths of Supreme Leader Ali Khamenei, IRGC commander Mohammad Pakpur and senior security adviser Ali Shamkhani.
Iran subsequently launched retaliatory strikes against Israel and US military assets in Gulf states.
(ał)
Source: PAP, IAR