Oil tops $115 after Qatar reports that an Iranian attack on an energy hub caused extensive damage.

Global crude oil prices surged more than 6% early on Thursday, a day after Iran retaliated against an Israeli strike on its biggest gas field by attacking neighboring Qatar’s main energy hub and causing “extensive damage,” as the U.S.-Israel war against Iran continued to escalate and disrupt energy infrastructure in the region.

The global benchmark, Brent Crude index, touched $116.13 per barrel early on Thursday, up more than 8% from the previous day.

After hovering under the $105 mark for most of the week, the global benchmark touched $110 on Wednesday after President Donald Trump suggested that the U.S. military could ‘finish off’ Iran, leaving other countries to deal with the aftermath and secure the Strait of Hormuz.

The index spiked further early on Thursday after Qatar’s state-run energy giant declared that Iran’s attack on its energy infrastructure had caused “extensive damage.”

Saudi Arabia’s defence ministry said it had intercepted a missile over the Red Sea port city of Yanbu and a drone fell into a refinery in the city, a potential sign that Iran may be expanding its attacks.

The U.S. benchmark West Texas Intermediate remained a bit more muted, touching $97.24 per barrel—up 1.05% compared to Wednesday.

The national average gas price rose once again on Thursday, touching $3.884, according to AAA’s fuel price tracker, a 32.5% increase from the previous month. The national average price of Diesel nearly reached $5.10 early on Thursday, just two days after breaching $5. Diesel is used to fuel heavy vehicles like trucks, tractors, combines, and construction machinery and a spike in its price is likely to impact the whole economy. Everything from groceries to shipping prices are expected to rise as a result.

In response to Israeli strikes on its oil and gas infrastructure, Iran launched attacks against U.S. allied Gulf countries on Wednesday. Qatar’s main energy hub, the Ras Laffan Industrial City, was the target of an Iranian retaliatory strike and the state-owned firm Qatar Energy said in a statement, that the missile attacks have resulted in fires caused “extensive damage.” QatarEnergy said several of its Liquefied Natural Gas (LNG) facilities were also targeted by missiles that caused “sizeable fires and extensive further damage.”

In a potential sign that Iran was expanding its retaliation to target oil infrastructure on the Red Sea coast Saudi Arabia said a drone had fallen into the SAMREF oil refinery and a damage assessment was ongoing. Saudi Arabia has used to transport crude oil as its eastern coast in the Persian Gulf remains blockaded by Iran. So an expansion of the strikes to target facilities along the Saudi western coast could further disrupt global oil shipments.