The main contract, light sweet crude for delivery in August, leapt US$1.26 to a record closing high of US$75.19 a barrel. Prices rose as high as US$75.40 a barrel, an all-time one day record.
That topped the prior record close of US$75.17 and one day record of US$75.35 a barrel, both set on April 21.
The records came as markets for light, sweet crude reopened after the long US Independence Day holiday.
Brent North Sea crude for August delivery jumped US$1.46 to US$73.98 a barrel in closing trades in London after an one day high of US$74.22, approaching its all-time record of US$74.97.
North Korea test-fired up to seven missiles including a long-range Taepodong-2 capable in theory of reaching US soil, triggering international outrage and crisis talks at the United Nations Security Council.
"Geopolitics continues to attract the attention of the oil community," Barclays Capital analyst Kevin Norrish said.
"While not directly energy market-related, news that North Korea has test-fired seven missiles ... it has perhaps added to the awareness that global geopolitics are currently in a state of considerable potential flux."
Lingering tensions over the Iranian nuclear energy crisis also continued to support oil prices, dealers said.
"The market is hopeful that there will be a diplomatic situation. It's not getting worse, but it remains in the background," said Victor Shum, an analyst with energy consultancy Purvin and Gertz.
Iran appeal rejected
EU foreign policy chief Javier Solana rejected Iran’s attempts to buy time to respond to an offer aimed at curbing its nuclear ambitions, giving Tehran's negotiator one extra day to meet for talks.
Analysts are concerned that Iran could disrupt its oil exports if hit by economic sanctions over the nuclear dispute.
"There seems to be plenty of political uncertainty toward supply and as long as that uncertainty doesn't reach the level of crimping economic sentiment or economic sentiment doesn't deteriorate on its own, prices will be well supported," said Fimat USA analyst Mike Fitzpatrick.
Fadel Gheit, an analyst at Oppenheimer, said the crises could feed off each other and affect the oil market.
"The North Korean crisis has more a psychological impact and adds more uncertainty," Mr Gheit said.
"It could push Iran to say to the international community: 'Why are you focusing on our country instead of considering the real threats?' It gives Iran a strong platform to fight economic sanctions."
In recent weeks, crude futures have won support from news of strong petrol demand in the United States, which is the world's biggest energy consumer, during the country's peak-demand driving season.
More than 40 million Americans were expected to have travelled 80 kilometres or more from home during the July 4 holiday, up 1.2 percent from last year, according to projections by the American Automobile Association.