Oil rose by more than 3% to above $63 a barrel on Thursday after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington.
Expectations that the US Federal Reserve could cut interest rates at its next meeting, stimulating growth in the world's largest oil-consuming country, and a drop in US crude inventories, also provided support to prices.
Brent crude, the global benchmark, was up $1.73 at $63.
55 a barrel at 1218 GMT, having earlier gained 3.3% to $63.88. US West Texas Intermediate.