Oil prices leapt to nearly $110 a barrel after Iranian media reported an airstrike hitting a facility on the world's largest natural gas field.
The Brent crude oil benchmark hit $109.91 a barrel just after 14:30 GMT, more than 5% higher than Tuesday's prices. It remains above $108.
The surge followed a report from Tasnim, a news agency affiliated with the Islamic Revolutionary Guard Corps (IRGC), that Iran's petrochemical complex on the South Pars gas field had been hit.
The benchmark UK gas price also jumped by 6% to 143.53p a therm before falling back below the 140p mark.
While the price of both oil and gas spiked, they remained below highs seen earlier in the conflict, with oil reaching $116.78 a barrel on March 9 and UK gas hitting 162.55p a therm on March 3.
Iran's oil ministry reported the fire at the petrochemical complex was under control as of Wednesday afternoon, but the extent of the damage remains unclear.
In response to the strike, Iran's military warned of "decisive action" against aggressors targeting its energy infrastructure, asserting that retaliatory measures would be taken if their fuel and energy assets are attacked.
Additionally, Iran has suspended gas shipments to Iraq to prioritize domestic supply, a decision influenced by the escalating military tensions.
Qatar, which shares the South Pars field (known as North Dome), has also faced production interruptions due to the conflict, with its foreign ministry spokesperson stating that such strikes against energy facilities threaten global energy security.
