Oil prices surged close to $120 per barrel Monday before easing slightly amid escalating conflict in Iran, which has threatened Middle East production and shipping.

Brent crude peaked at $119.50 and later traded near $113, while U.S. West Texas Intermediate hit $119.48 before falling to $110.17.

Civilian targets have been affected, including a desalination plant in Bahrain and smoldering oil depots in Tehran following Israeli strikes.

Tanker traffic through the Strait of Hormuz, which carries about 20% of global oil, has largely halted, prompting Iraq, Kuwait, and the UAE to cut production, the AP has reported.

The supply disruption has pushed fuel prices higher, affecting industries worldwide and jolting Asian economies dependent on Middle Eastern oil, with prices near levels last seen after Russia’s 2022 invasion of Ukraine.