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 9 March, while UK gas reached 162.55p a therm on 3 March.
Iran's oil ministry stated that a fire at the petrochemical complex was under control by Wednesday afternoon, but the extent of the damage remained unclear.
Iran's military warned it would take decisive action in response to the strike on its energy infrastructure. As previously warned, if the fuel, energy, gas, and economic infrastructures of our country are attacked by the American-Zionist enemy, we will strongly retaliate, the military emphasized in a statement.
In addition, Iran has suspended the flow of gas to Iraq to ensure it can meet domestic demands more effectively.
The vast majority of Iran's gas supply - 94% - is utilized domestically. Meanwhile, Qatar, which also operates facilities on the gas field, announced it had halted production earlier in March in response to the ongoing conflict.
Qatar's foreign ministry spokesman, Majed Al Ansari, indicated that attacks on energy infrastructure pose a significant threat to global energy security.
