Oil prices have jumped in recent days as Iran fired a barrage of missiles at Israel, moving the Middle East closer to a long-feared regional war that could affect global energy supplies.

Futures contracts for Brent crude, the international benchmark, rose more than 3% on Wednesday, to 75.75 dollars a barrel on Wednesday, after similar jumps earlier in the week.

The escalation has led to warnings that energy exports could be disrupted if violence in the region continues to widen. Energy infrastructure in the Middle East accounts for about one-third of global oil production.

Aside from being a top 10 global exporter of oil, Iran also borders the Strait of Hormuz, an area through which Saudi Arabia, the United Arab Emirates, Qatar and Kuwait also export oil and gas.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said concerns are currently being “mitigated by expectations that Saudi Arabia will turn on the taps more fully, and lower demand from China”.

However, she added that price rises are “likely to continue while uncertainty reigns about just how far conflict will spread”.

The missile attacks came after Israel said it had begun limited ground incursions into Lebanon, targeting Hezbollah militia which are backed by Iran.

Israel has said it intercepted most of the missiles, but Prime Minister Benjamin Netanyahu vowed on Tuesday to retaliate. He said Iran “made a big mistake tonight and it will pay for it”.

An Iranian commander also threatened more strikes on infrastructure if the Israeli retaliation stretches into Iran’s territory.

The rise in oil prices has also pushed up shares in energy giants BP and Shell this week, while defence giant BAE Systems also saw its stock rise this week.

Joshua Mahony, chief market analyst at Scope Markets, said: “Unsurprisingly, the heavily commodity-focused FTSE 100 has enjoyed the benefits of rising oil prices, with Shell and BP both pushing higher in anticipation of a potential conflict that could impact the production and transit of oil in the region.”

Nonetheless, prices remain well below the 92 dollars a barrel level seen nearly a year ago, when Hamas attacked Israel on October 7, sparking 12 months of conflict.

Mark Haefele, chief investment officer at UBS Global Wealth Management, said the bank’s “base case is that the conflict stops short of an all-out war between Israel and Iran, including their respective allies”.