International benchmark Brent crude oil traded at $80.09 per barrel around at 09.45 GMT on Thursday while American benchmark West Texas Intermediate (WTI) hit $72.16.
The price of Brent hitting $80 a barrel this week is the highest seen since 2014.
The increase is largely driven by possible supply concerns in the Middle East amid the relocation of the U.S. Embassy from Tel Aviv to Jerusalem, which sparked huge protests in the region.
During the relocation ceremony and in ensuing clashes, 62 Palestinian demonstrators died and hundreds more were injured by Israeli armed forces deployed along the Gaza border, according to the Palestinian Health Ministry.
In addition, Venezuela's oil production declined by 41.70 thousand barrels per day, according to OPEC's latest report.
According to international media, French oil giant Total announced Wednesday that it would pull out of Iran in the wake of U.S. President Donald Trump's decision to withdraw the country from the Iran nuclear agreement and re-implement sanctions.
By Gulsen Cagatay