The oil price spike is due to fear rather than a real disruption of crude supplies, energy analysts say.

Israel appears ready to attack Iran, according to U.S. and European officials, and Israel's leadership has been pressing Trump to allow strikes.

JPMorgan fears crude oil could hit a high of $130 a barrel, causing U.S. inflation to return to 5% in a worst case scenario.

Oil prices jumped overnight, but Wall Street is awaiting any retaliation from Iran.

The market turmoil reflects uncertainty over the conflict's next steps: whether Iran will retaliate in a way that escalates the conflict further.

Conflict in the Middle East often leads to higher wholesale energy prices, which can feed through to inflation.

The oil price spike is due to fear rather than a real disruption of crude supplies, energy analysts say.

The initial moves in oil markets already puts this week's developments on par with the average event since the 1980s, according to a TD Securities strategist.