Oil prices gained about 2% after US President Donald Trump said he and China's Xi Jinping agree Iran cannot have nuclear weapons and as concerns persisted over ship attacks and seizures despite Tehran saying about 30 vessels crossed the Strait of Hormuz.
Brent crude oil futures were up $1.77, or 1.67%, to $107.49 a barrel at 0642 GMT. Prices hit a session high of $107.99 earlier in the day.
US West Texas Intermediate futures were up $2.13, or 2.11%, to $103.30 a barrel.
For the week, Brent has climbed nearly 6%, while WTI has jumped more than 7%, on uncertainty over the shaky ceasefire in the Iran conflict.
Trump said his patience with Iran is running out and he had agreed in talks with Xi that Tehran cannot be allowed to have a nuclear weapon and must re-open the Strait of Hormuz.
Xi did not comment on his discussions with Trump about Iran, although China's foreign ministry issued a statement.
"This conflict, which should never have happened, has no reason to continue," the ministry said.
"With the Beijing summit not delivering any breakthrough on Iran, market focus is back on the deadlock and a blockaded Strait, with a tail risk of renewed military escalation," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
Among deals the market was looking for from the summit, Trump said China wants to buy oil from the United States.
In incidents around the Strait of Hormuz, a ship was reported seized by Iranian personnel off the United Arab Emirates and headed for Iranian waters on Thursday, and an Indian cargo vessel carrying livestock from Africa to the UAE was sunk on Wednesday in waters off the coast of Oman.
The White House said Trump and Xi had agreed on the need to keep the shipping lane open.
Iran's Revolutionary Guards said 30 vessels had crossed the Strait of Hormuz since Wednesday evening, still far short of 140 that were typical daily before the war, but a substantial increase if confirmed.
Yang An, analyst at Haitong Futures, said the main driver of oil prices was still tight supply.
"Oil prices swung several times yesterday but still closed near the day's high," he said.
"Ships passing through the strait eased some market concerns, but not enough to change the strong trend driven by tight supply."
