The price of Brent crude oil spiked to $118 per barrel Thursday as markets tumbled, marking the second time since the war began that the price reached nearly $120 per barrel. The spike followed Israeli strikes on the largest natural gas field in the world, South Pars in Iran, and Iran’s subsequent retaliation in the form of a strike on the world’s largest liquefied natural gas facility in Qatar.

Brent crude oil is the benchmark by which oil is priced globally.

Meanwhile, the U.S. benchmark, West Texas Intermediate crude, rose slightly to $96 per barrel, up from $95.46 on Wednesday. The national average for gas Thursday was $3.88 per gallon, while diesel prices shot to $5.10. The price at the pump follows the Brent crude oil trend, which has risen sharply since the war began and Iran effectively closed the Strait of Hormuz, the maritime chokepoint for about a fifth of the world’s oil supply.

Rising oil prices directly impact the stock market, and Thursday was no exception as stock markets took a nosedive in Europe and Asia following the spike in oil prices. The European Stoxx 600 was down nearly 2 percent, the Japanese Nikkei 225 dropped 3.4 percent, and the Hong Kong Seng Stock Index fell by about 2 percent. In the United States, the S&P 500 fell 1.4 percent, down 3.7 percent since the war began.

The inflationary impact from the war will restrain the Fed’s hands from lowering interest rates any time soon, according to Jerome Powell, the chair of the Federal Reserve.