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. Oil reached $116.78 a barrel on March 9, while UK gas peaked at 162.55p a therm on March 3.
Iran's oil ministry stated that a fire at the petrochemical complex was under control, but the extent of the damage remains unclear.
In reaction to the strike, Iran's military warned it would take decisive action if its energy infrastructure continued to be targeted. They claimed any attack on its systems would prompt a strong counterattack.
Additionally, Iran has paused the flow of gas to Iraq to secure domestic supplies, as 94% of its gas is used internally.
Qatar, which shares the gas field, called North Dome, temporarily suspended production early in March due to the conflict, with its foreign ministry describing the strikes as a threat to global energy security.
