Brent crude climbed above $102 a barrel on October 1-2 as fears of Middle East supply disruptions rattled global oil markets.

Prices spiked on concerns that escalating tensions between the US and Iran could threaten shipments through the Strait of Hormuz, the world's most important oil transit route.

Three tankers were attacked this week, adding to the market's anxiety. Flows through Hormuz are recovering but remain fragile.

The price surge marks a sharp reversal from the relatively calm trading seen through much of the year. Traders are now pricing in a risk premium for Gulf supplies.

Analysts say the market is torn between fear and fundamentals. Global demand growth remains modest, and production from non-OPEC countries is steady.

But the concentration of supply risk in the Gulf means even threats to shipping can move prices sharply. A single incident in Hormuz could send prices much higher.

For importing countries like India, the spike is unwelcome news. Every $10 rise in crude adds to the import bill and puts pressure on fuel prices.

Markets will watch this weekend's geopolitical developments closely for clues on whether the rally has further to run.