Brent crude oil breaks through $108 per barrel, Iran claims some of its energy facilities were attacked and vows retaliation

International oil prices are rising, after Iran previously stated that some of its energy facilities were attacked and threatened retaliatory strikes against neighboring countries’ oil and natural gas facilities.

Brent crude oil broke above $108 per barrel, up more than 3% earlier this Tuesday. Iran’s state television reported that parts of the South Pars gas field were hit in airstrikes, and the Asaluyeh oil industrial facilities were also targeted. Fars News Agency stated that Iran has vowed to retaliate against enemy facilities previously deemed secure.

The attacks on Iran’s energy assets mark an escalation in the conflict, which is disrupting global oil supplies. Brent crude has surged nearly 80% this year, while shipping through the Strait of Hormuz has almost come to a halt — the strait accounts for about one-fifth of the world’s oil and liquefied natural gas transportation.

The conflict has led to soaring energy prices, fueling fuel shortages in Asia and raising concerns about accelerating global inflation. Following the attacks, European natural gas futures prices also surged significantly.

“The immediate impact of the potential closure of the Strait of Hormuz — which the U.S. government may be seriously underestimating — is rising energy prices,” said Tamas Varga, an analyst at broker PVM. “The U.S. objectives in Iran remain unclear, and an end to the conflict is still far off.”

Iran previously also promised to retaliate for attacks that resulted in the death of its national security chief, Ali Larijani. U.S. President Donald Trump stated that the U.S. might end the conflict soon.