Oil traders accepted options contracts for more than 3 million barrels in a bet on the possibility of prices jumping to $250 starting in June, as geopolitical and war risks continue to escalate.

Nearly 3,000 lots of June US oil call options worth $250 were traded for a penny each on Tuesday. Traders and experts said a "lottery ticket" could potentially pay off if the price rally reaches previously unseen levels starting in the middle of next month, although the trade appears linked to $25 put options, which could signal a broader macroeconomic strategy.

The volumes of oil options betting on the rise skyrocketed to reach a record level. Which led to the rise in the premium for long contracts over short contracts this week to its highest levels since October, in light of Israel's pledge to respond in the wake of the attacks launched by Iran over the weekend with missiles and drones.

The prices of US crude futures contracts exceeded $85 per barrel, and Brent crude is trading near $90 in light of mounting fears of the widening scope of the conflict as a result of limited supplies and strong demand.