Oil prices jumped more than $1 a barrel in Wednesday's trade on growing concerns over rising Middle East tensions and disrupting crude output from the region.
Meanwhile, Brent futures jumped $1 (1.36%) to $74.56 a barrel while U.S. crude oil West Texas Intermediate (WTI) jumped $1.07 (1.53%) to $70.9 in early trading Wednesday.
During trading on Tuesday, both crude benchmarks jumped more than 5%.
Philip Nova analyst Priyanka Sachdeva said the oil market was largely focused on the narrative of a weakening global economic outlook that was affecting fuel demand.
He also said that market sentiment continued to shift towards oil supply disruptions in the Middle East after Iran fired a ballistic missile at Israel.
Iran said earlier on Wednesday that its missile strikes on Israel were more than deterring further provocations while Israel and the US pledged to retaliate against Tehran.
The United Nations Security Council is scheduled to meet on the Middle East on Wednesday and the European Union is calling for an immediate ceasefire.
The direct involvement of OPEC member Iran, increasing the prospect of disruption to oil supplies could rise to a six-year high of 3.7 million barrels per day in August.
For now, oil investors will also be closely watching Friday's US jobless claims data as it is expected to influence the Fed's projected monetary easing which may help long-term oil demand by stimulating overall economic activity.
