Oil prices have surpassed $100 a barrel amid the fallout from the United States and Israel’s war against Iran.

Brent crude, the international benchmark, rose more than 20 percent on Sunday, at one point topping $114 a barrel, as fears grew of a prolonged disruption to global energy supplies.

After moderating slightly, the benchmark index was around $107.50 at 2:30 GMT on Monday.

The rise marked the first time oil rose above $100 a barrel since Russia’s invasion of Ukraine in 2022.

US President Donald Trump, who campaigned heavily on cost-of-living concerns in the 2024 election, downplayed rising prices.

“Near-term oil prices, which will fall rapidly when the destruction of Iran’s nuclear threat ends, is a very small price to pay for the security and peace of the United States and the world,” Trump said in a post on Truth Social.

“ONLY FOOLS WOULD THINK DIFFERENTLY!”

US Energy Secretary Chris Wright also downplayed the prospect of a rise in energy prices earlier on Sunday, telling CBS News’ Face the Nation that any increase in prices at the pump would be “temporary.”

Crude oil prices have risen about 50 percent since the United States and Israel launched joint attacks on Iran on February 28.

Iran has effectively stopped shipping in the Strait of Hormuz in retaliation, threatening about a fifth of the world’s oil supply.

Iraq, the United Arab Emirates and Kuwait, three of the largest producers in the Organization of the Petroleum Exporting Countries (OPEC), have cut production amid a backlog of barrels with nowhere to go due to the effective closure of the waterway.

Attacks on energy production facilities in the region have further threatened supplies.

Iran has been blamed for multiple attacks on energy facilities across the Gulf, including Qatar, Saudi Arabia and Kuwait.

On Saturday, Israel carried out airstrikes against Iran’s oil infrastructure for the first time since the start of the war.

The attacks hit four oil storage facilities and an oil production transfer center in Tehran and Alborz province, according to Iranian state media.

Iran’s Revolutionary Guard Corps (IRGC) threatened on Sunday to attack energy facilities across the region in retaliation, warning that oil could soar to $200 a barrel if the United States and Israel “continue with this game.”

Stocks in Asia fell sharply on Monday morning, as investors braced for the fallout from rising energy prices.

Japan’s Nikkei 225 fell more than 7 percent in early trading, while South Korea’s KOSPI fell more than 8 percent.

In Hong Kong, the Hang Seng Index fell almost 3 percent.

US stock futures, which trade outside normal market hours, also suffered substantial losses.

Futures tied to Wall Street’s benchmark S&P 500 index fell 1.7 percent, while those on the tech-heavy Nasdaq Composite fell 1.90 percent.

While Trump administration officials have insisted the war will end within weeks, the prospect of a prolonged disruption to global energy supplies has stoked fears of higher inflation and slowing economic growth.

The International Monetary Fund has estimated that each sustained 10 percent increase in oil prices results in a 0.4 percent increase in inflation and a 0.15 percent reduction in global economic growth.

“If the shock proves short-lived, the global economy can recover quickly,” Mike O’Rourke, chief market strategist at JonesTrading, told Al Jazeera.

“If oil remains at these levels for several weeks, it will be a major global headwind. Those distant markets have underestimated the risks related to the conflict in Iran.”

In an interview published by The Financial Times on Friday, Qatar’s Energy Minister Saad al-Kaabi warned that all producers in the region could soon be forced to halt production and that prices could reach $150 a barrel.

“We hope that all those who have not requested force majeure will do so in the coming days as this continues,” Al-Kaabi told the newspaper.

“All exporters in the Gulf region will have to declare force majeure.”