Crude oil futures jumped more than 3% Sunday after Israel struck two natural gas facilities in Iran, raising fears that the war will expand to energy infrastructure and disrupt supplies in the region.

Oil prices continued climbing Sunday after Israel and Iran traded blows against their respective energy facilities, threatening to expand the impact of the conflict in

The country’s exports mostly come from Kharg Island in the Persian Gulf. But Israel’s energy facilities are also at risk.

Israeli energy company Bazan said its Haifa oil refinery suffered pipeline and transmission line damage during Iran’s overnight missile barrage. Refining core facilities continue to operate at the site,

Market watchers believe a full-scale disruption of global oil flows by closing the waterway is unlikely, and might even be physically impossible.

The Iran shock presents two risks to the price of oil, which rose 8 per cent to $74 a barrel on Friday morning, a sizeable jump for a single day. The first is that, in the context of the rising hostilities, Iran’s current crude exports, which have already been softening, could fall further.

Israel’s sweeping attack on Iran has sent a jolt through markets and again thrust geopolitical risk front and center for investors. The initial reaction was sharp, with oil prices briefly surging as much as 13%,