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 14:30GMT, 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. Oil reached $116.78 a barrel on 9 March, while UK gas reached 162.55p a therm on 3 March.
Iran's oil ministry reported on Wednesday afternoon that a fire at the petrochemical complex was under control, but the extent of the damage to the facility remained unclear.
Iran's military warned it would take 'decisive action' in response to the strike on its energy infrastructure, emphasizing readiness to target the origins of such aggression.
Additionally, Iran has suspended the flow of gas to Iraq in response to the attack to shore up domestic supplies, as the vast majority of Iran's gas supply—94%—is used domestically.
Notably, Qatar also operates facilities on the gas field, which it calls North Dome, and has halted production earlier in March in response to the conflict. Qatar's foreign ministry condemned the strikes, asserting they threaten global energy security.
