Gas prices jumped and oil prices rose again after an escalation of attacks by Israel and Iran on gasfields heightened fears of prolonged disruption to international energy supplies.

Brent crude, the global oil benchmark, rose by 8% to $116 a barrel. Crude prices have soared by nearly 60% since US and Israeli attacks on Iran started the war on 28 February.

European gas prices jumped, with the Dutch wholesale gas price up 24% at €68 a megawatt hour, its highest since the end of December 2022.

UK gas prices have more than doubled since late February, and are likely to drive up household bills. The month-ahead UK wholesale gas price rose by 23% on Thursday morning to 172p a therm, its highest level since August 2022.

Traders are responding to the escalation in the Middle East, where Iran stepped up its attacks on energy facilities, causing significant damage to Ras Laffan – the world’s largest liquefied natural gas (LNG) facility in Qatar – in response to Israel’s attack on its South Pars gasfield.

The rebound in oil and gas prices triggered a fresh sell-off across stock markets. In Asia, Japan’s Nikkei tumbled 3.4% while South Korea’s Kospi dropped by 2.7% and Hong Kong’s Hang Seng slid 2%. European markets followed Asia lower, with the UK’s FTSE 100 down 1.7%, Germany’s Dax down 2.3% and France’s CAC down 1.7%.

Donald Trump has threatened to “massively blow up” South Pars completely if Iran attacks Qatar again. Israel’s decision to target the South Pars gasfield was a significant escalation of the war.

Ras Laffan in Qatar suffered “extensive damage” after strikes by Iran, the state-run QatarEnergy giant said. Early on Thursday, QatarEnergy reported “sizeable fires” and significant damage at several LNG facilities at the hub. The Qatari interior ministry later said that all fires had been contained.

The energy company Shell said the attack on Ras Laffan had caused damage to its Pearl GTL (gas-to-liquids) facility. Shell added the fire was quickly put out, there were no reported injuries and Pearl is now in a “safe state”, after Iran attacked the facility in retaliation for the attack on its South Pars gasfield.

Authorities in Abu Dhabi said it had been forced to shut down operations at its Habshan gas facility and Bab oilfield because of Iranian attacks.

“Fears of a sustained energy shock have resurfaced after the escalation in the Iran war sent oil and gas prices soaring. The prospect of a longer, more drawn-out conflict is in sharp focus, as both sides ratchet up attacks on energy infrastructure,” said Susannah Streeter, the chief investment strategist at Wealth Club.

“Warnings that oil could reach $150 a barrel have resurfaced. Israel’s attack on Iran’s gas fields has prompted retaliatory strikes on facilities in Qatar. Europe in particular is reliant on LNG exports from Qatar, as countries have been weaning themselves off dependence on Russia. The conflict is not only highly damaging for economies in the region, with tourism and business activity hit, but the knock-on effects of higher energy prices will have toxic repercussions worldwide.”