The Brent crude futures contract was up $1.17, or 1.6%, at $74.4 a barrel as at 0005 GMT and US West Texas Intermediate crude was up $1.34, or 1.87%, at $73.11 - both having risen more than 2% earlier in the trading session.

US and Brent crude prices jumped on fears of supply disruption from the Middle East as Iran has repeatedly threatened to close a key shipping route.

The run-up in crude oil futures paused on Monday even after Israel struck two natural gas facilities in Iran over the weekend, raising fears that the war will expand to energy infrastructure and disrupt supplies in the region.