Shear-strain-thickening transition under oscillatory flow was observed in flocculated ferric-oxide suspensions in mineral oil. The value of the dynamic modulus of the suspensions that was measured at small strain amplitude after cessation of shear also became higher when the strain amplitude of the applied shear had been within or above the transition region. The ferric-oxide powders used were an acicular submicron maghemite (magnetic) and the hematite (non-magnetic) that was converted from the maghemite by heat treatment. The powders were treated with a dispersing agent and the suspensions were prepared in 33% by particle weight. The strain-thickening transition was observed in both the magnetic and the non-magnetic suspensions. However, the onset of the strain-thickening in the magnetic suspension was found at about one decade larger strain amplitude than that in the non-magnetic analog suspension, indicating particle interactions affect to the appearance of the phenomenon. A qualitative interpretation was made in view of site percolation for the enhancement of modulus at rest after the application of the large-amplitude oscillatory shear, where the process of the strain-thickening transition under shear and the development of the modulus after stopping the shear was described with a flee model in which the flocculation phase dilates as a result of the reduction of the particle linkages under higher shear.