Oil prices jumped more than 4 per cent on Thursday as traders weighed intensifying Persian Gulf shipping risks and US-Iran tensions.

December Brent crude futures rose 4.4 per cent to $104.73 a barrel, while the benchmark traded above $105. US benchmark WTI also moved sharply higher.

Analysts pointed to several drivers. A tanker was struck by projectiles off the coast of Qatar. Houthi attacks damaged two Saudi airports. Reports suggested possible renewed US strikes against Iran.

US Gulf producers also shut production as Hurricane Isaias approached. About 511,619 barrels a day, or 25 per cent of Gulf oil production, had been shut in by midday Wednesday.

The surge adds pressure on import-dependent economies like India, where higher crude is already weighing on the rupee and fuel prices.

The International Energy Agency said member countries supported accelerating the remaining emergency oil-stock releases pledged in March. Around 325 million barrels have already been released.

For consumers, the surge could mean higher pump prices in the coming days. Fuel retailers usually revise prices with a lag.