Brent crude prices touched $93 a barrel on Wednesday as tensions in the Middle East escalate.
It's the highest prices have been since the start of the Israel-Hamas war, and is more than $20 more than in June.
It follows a deadly blast on Tuesday, killing at least 500 people at the Gaza City Hospital. Israeli and Palestinian officials have blamed each other for the attack.
The likelihood of conflict escalating, possibly pushing prices above $100, continues as Joe Biden's summit with Egyptian and Palestinian leaders was cancelled by its host, Jordan, reducing the chance of a diplomatic solution.
Vivek Dhar, an analyst at Commonwealth Bank of Australia, said: "A long occupation looms as the scenario that pushes Brent oil futures above $100 a barrel because it raises the risk that the Israel Hamas conflict expands and potentially draws in Iran directly."
Analysts at S&P Global Ratings said there would be limited spillover from the conflict in the wider region, but added that its assessment of geopolitical risks had risen, as had the threat of another global energy price shock.
"Oil prices remain volatile and we expect upward pressures will remain while tensions in the Middle East persist and the risk of Iran becoming more directly involved in the conflict remains," they said.