NEW YORK, Aug. 7 -- Oil prices barreled higher again Thursday, extending their volatile run, while global stock markets had a mixed day ahead of key US employment data.

With traders awaiting developments surrounding the Strait of Hormuz, the main oil contracts rose, Brent crude adding nearly 4 per cent, while the main US contract WTI added nearly 3 per cent.

Reports that a potential agreement bars US and Israeli vessels from entering the Strait have dampened expectations, said Again Capital's John Kilduff.

"This situation is just far from settled and you can only give hope so much of a chance, so the market is taking back some of the optimism about the situation," Kilduff said.

The rebound in oil prices weighed on US equity markets, w...