Suspected missile strikes hit an Iranian oil tanker near the Saudi coast on Friday, its owner said, the first Iranian vessel targeted since a spate of attacks in the Gulf Washington blamed on Tehran.
Oil prices surged more than two percent on the news, which raised new supply concerns with tensions still high after last month's attacks on two Saudi crude facilities.
The National Iranian Tanker Company, which owns the ship, said the hull of the Sabiti was hit by two separate explosions off the Saudi coast, saying they were "probably caused by missile strikes".
The news sent Brent surging 2.3 per cent to USD 60.46, while West Texas Intermediate jumped 2.1 per cent to USD 54.69. Prices had already been rising on growing hopes for a breakthrough in the China-US trade talks.
The blasts come just weeks after two of Saudi Arabia's biggest oil installations were hit, wiping out five percent of global production.
The National Iranian Tanker Company said the hull of the vessel was hit by two separate explosions about 100 kilometres (60 miles) off the Saudi coast.
It identified the tanker as the Sabiti and said the blasts were "probably caused by missile strikes".