STORY: Oil rose more than 4% on Thursday (March 26) and jumped to $106 a barrel.
It was a turnaround from the previous session's losses.
And was driven by the potential for supply disruptions from a possible drawn out conflict in the Middle East.
Iran's foreign minister said Wednesday the country is reviewing a U.S. proposal to end the war.
But they added Iran has no intention of holding talks to end the conflict.
The White House said U.S. President Donald Trump will hit Iran harder if Tehran doesn't accept the country has been - quote - "defeated militarily."
Sources have told Reuters the Pentagon is planning to send thousands of airborne troops to the Gulf to give Trump more options for a ground assault.
One analyst said global energy markets have been hit by the military escalation, as well as limited tanker movement under strict Iranian conditions.
The conflict has nearly stopped shipments through the Strait of Hormuz.
The Strait normally carries about a fifth of the world's crude oil and LNG supply.
The International Energy Agency - or IEA - has called it the biggest oil supply disruption ever.
Japanese Prime Minister Sanae Takaichi asked the IEA for an additional coordinated release of oil stockpiles on Wednesday.
That as Tokyo looks to hedge against a long conflict.
Analysts have also noted other supply concerns.
Reuters has calculated from market data at least 40% of Russia's oil export capacity has halted.
It follows Ukrainian drone attacks and the seizure of tankers.
Iraqi officials also warned Wednesday the country's oil production had slipped.
They said storage tanks had reached high and critical levels.
