Oil prices have surged past $90 a barrel, marking the largest weekly gain since the Covid-19 pandemic, as the conflict in Iran disrupts Middle East energy markets.

Brent crude reached $91.89 on Friday, up more than 25% since the U.S.-Israel strikes on Iran, fueled by storage limits in Kuwait, Saudi Arabia, and the UAE.

Concerns over Gulf energy exports have escalated after Iranian drone attacks on Qatar’s LNG terminals and threats to tankers transiting the Strait of Hormuz.

The spike in oil and gas prices has driven inflation fears, causing UK and Eurozone government bond yields to rise sharply and pushing stock markets in Asia-Pacific and Europe to their worst weekly losses in years, The Guardian has reported.

Airlines were hit particularly hard, with British Airways’ parent IAG dropping over 12% and Wizz Air losing roughly 20% of its value amid profit warnings.