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Oil prices soared above $100 and stock markets extended losses as Iran’s new supreme leader ordered the Strait of Hormuz to be kept closed.

Concerns about a long, drawn out conflict were not assuaged by US President Donald Trump saying that stopping the Islamic republic’s “evil empire” was more important than crude prices.

Global markets have been roiled since the United States and Israel launched attacks on Iran. Tehran’s retaliatory strikes on shipping and Gulf neighbours have nearly cut off maritime traffic through the Strait of Hormuz, through which pass around a fifth of the world’s oil and liquefied natural gas.

“Oil prices are up by double-digit percentages again today, as the realisation sinks in that the US is not about to either end the war or institute some kind of convoy system in the region,” said analyst Chris Beauchamp at IG trading and investment platform.

Energy Secretary Chris Wright acknowledged the US military was currently “not ready” to escort tankers through the critical Strait of Hormuz.

Brent North Sea crude, the international benchmark contract peaked at $101.59 per barrel on Thursday.

At $100 per barrel, Brent is up around 38 percent from the eve of the conflict, which began on February 28 when the United States and Israel launched airstrikes against Iran. It is up nearly two-thirds from the start of the year.

Iran’s new supreme leader Mojtaba Khamenei called on Thursday for using “the lever of blocking the Strait of Hormuz”, which the country’s Revolutionary Guards vowed to carry out.

The call followed fresh attacks against Gulf energy targets: an attack on two oil tankers off Iraq killed at least one crew member, while a cargo ship caught fire after being hit by shrapnel.

Oil prices pared their gains after Iran’s deputy foreign minister said that Tehran had allowed ships from some countries to cross the Strait of Hormuz.

The International Energy Agency said the Mideast war “is creating the largest supply disruption in the history of the global oil market”, a day after its member countries agreed to unlock 400 million barrels of oil from their reserves — their largest release ever.

Analyst David Morrison at Trade Nation said that if the announcements of the release of oil from strategic reserves “were supposed to cap prices, then they failed dismally”.

The moves may have “suggested some panic as hostilities across the Middle East intensified”, he added.

The rise in energy prices could cause prices to rise throughout the economy.

“The longer the oil price remains elevated, the more damaging and long lasting the inflation shock will be for the global economy,” noted Kathleen Brooks, research director at trading group XTB.

Wall Street’s main stock indices were down more than one percent in early afternoon trading.

Europe’s leading equity markets closed lower, as did most Asian markets.

eToro US investment analyst Bret Kenwell said that while US equities had held up rather well to date, a long conflict would have a profound impact on businesses.

“If oil doesn’t retreat meaningfully, the pressure won’t just be felt at the pump — it will bleed into margins, spending, and potentially quarters of softer growth,” he said.

The dollar rose further against major rival currencies.

“The dollar has strengthened, driven by safe-haven demand, fears of inflation, and higher-for-longer interest rate expectations,” said Victoria Scholar, head of investment at Interactive Investor.

– Key figures at around 1630 GMT –

Brent North Sea Crude: UP 8.6 percent at $99.88 per barrel

West Texas Intermediate: UP 9.3 percent at $95.38 per barrel

New York – Dow: DOWN 1.2 percent at 46,871.01 points

New York – S&P 500: DOWN 1.2 percent at 6,698.16

New York – Nasdaq Composite: DOWN 1.4 percent at 22,389.89

London – FTSE 100: DOWN 0.5 percent at 10,305.15 (close)

Paris – CAC 40: DOWN 0.8 percent at 7,978.98 (close)

Frankfurt – DAX: DOWN 0.2 percent at 23,589.65 (close)

Tokyo – Nikkei 225: DOWN 1.0 percent at 54,452.96 (close)

Hong Kong – Hang Seng Index: DOWN 0.7 percent at 25,716.76 (close)

Shanghai – Composite: DOWN 0.1 percent at 4,129.10 (close)

Euro/dollar: DOWN at $1.1525 from $1.1574 on Wednesday

Pound/dollar: DOWN at $1.3355 from $1.3419

Dollar/yen: UP at 159.20 yen from 158.92 yen

Euro/pound: UP at 86.31 pence from 86.25 pence