Oil prices jumped on the news of Israel’s attack on Iranian nuclear sites last Thursday, as traders fretted over the possibility of a larger conflict and disruptions to global oil markets and shipping.

Brent crude, the international benchmark for oil prices, jumped by more than 8%, from $68.61 per barrel the previous day to $74.36 on Friday morning. 

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The price increase was driven in large part by fears that broader military action could hurt supply from around the Persian Gulf.

“For now, this is a risk premium — owners will hold back from putting ships into the Gulf on a business-as-usual basis,” Anoop Singh, the global head of shipping research at Oil Brokerage, told Bloomberg. 

A spokesperson for Israel said it is the first stage of an operation to target various areas of interest in Iran.

Israel Katz, Defense Minister of Israel, warned civilians to be ready for a counterattack by Iran following Thursday’s damage. Katz also said the goal of the attacks was lessening Iran’s defense and nuclear capabilities in order to remove their own threat against Israel.

Israel has ordered certain oil production be halted. Companies such as Greek Independent Energean, which extracts oil from the Karish gas field, have already followed through on this order, according to Argus Media. 

JPMorgan had warned that oil prices could rise to $120 per barrel on an Israeli attack on Iran.

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So far, price movements have been more subdued. But traders are watching closely for signs that Iran might threaten shipping around the Strait of Hormuz, at the entrance to the Gulf.

“In theory, Iran could halt tanker traffic in the Strait for a short period by attacking or threatening vessels transiting the narrow waters at the entrance to the Gulf,” market analyst John Kemp wrote in a note Friday. “But the most likely response is that the United States and its allies would organise an armed convoying system with U.S. and allied warships escorting tankers.”