The global oil marker was up as much as 1.7 per cent to $78.44 a barrel, the highest since November 2014.
The day’s gain comes as more than 50 Palestinians were killed and over 1,000 were injured by Israeli forces during protests against the inauguration of the US embassy in Jerusalem.
It marks the latest escalation of conflicts in the region and follows US President Donald Trump’s move last week to withdraw the US from its nuclear deal with Iran and reinstate sanctions on the country.
West Texas Intermediate, the US oil benchmark, was up 0.8 per cent at $71.26. It hit a three-and-half-year high of $71.89 a barrel last week.