Global oil prices spiked sharply after Israel confirmed it had carried out an attack on Iran, triggering fears of a wider conflict that could threaten energy supplies from the Middle East.

The benchmark Brent Crude and Nymex light sweet crude prices rose by more than 10 percent following the announcement.

The escalation has sparked fresh concerns among traders and analysts that rising tensions between the two nations could disrupt oil flows from the region, which plays a major role in global energy supply.

The cost of crude oil has a direct impact on prices of fuel, transport, and even food worldwide.

Energy market analysts say all eyes are now on Iran and how it will respond in the coming days.

“It’s an explosive situation, albeit one that could be defused quickly as we saw in April and October last year, when Israel and Iran struck each other directly,” said Vandana Hari of Vandana Insights. “It could also spiral out into a bigger war that disrupts Mideast oil supply,” she added.

In a worst-case scenario, Iran could choke off millions of barrels of oil a day if it moves to target key infrastructure or shipping traffic in the Strait of Hormuz.

The narrow waterway, which links the Gulf to the Arabian Sea, is one of the most critical channels for global oil shipments.

Roughly one-fifth of the world’s oil supply passes through the strait, and at any given time, dozens of tankers are either en route to or leaving it. It borders Iran to the north and Oman and the United Arab Emirates to the south.

Saul Kavonic, head of energy research at MST Financial, said the market is still gauging the risk. “What we see now is very initial risk-on reaction. But over the next day or two, the market will need to factor in where this could escalate to,” he said.