LONDON, United Kingdom (AFP)—Oil and gas prices soared, stock markets slid and the dollar firmed on Monday as the widening Iran war shook financial markets across the globe.

European natural gas prices rocketed more than 50 percent higher after Qatar’s state-run energy firm said it had halted liquefied natural gas production following Iranian attacks on facilities at two of its main gas processing bases.

Meanwhile world crude futures surged nearly nine percent on fears of disruption to supplies, with the vital Strait of Hormuz — through which around 20 percent of global seaborne oil passes — effectively shut and several ships attacked.

Wall Street’s main indices opened with losses of more than one percent as investors exited trades in favour of the dollar and gold, seen as safer bets in times of economic unrest.

In Europe, both Frankfurt and Paris were down over two percent in afternoon trading, mirroring losses in Asia.

The greenback jumped nearly one percent against the British pound before paring gains, while gold climbed 2.6 percent to $5,382.60 an ounce.

“Investors are scuttling towards safe havens, seeking shelter as conflict widens in the Middle East,” noted Susannah Streeter, chief investment strategist at Wealth Club.

“What happened over the weekend and what continues now has created added uncertainty,” said Briefing.com analyst Patrick O’Hare.

However there has not been a rout on equity markets “because participants are not convinced yet the military action will fuel disarray for the global economy.”

Airline share prices took a battering as carriers were forced to cancel flights and Dubai’s airport took a hit, although it later said it would resume limited flights.

Shares in British Airways owner IAG lost 5.6 percent and Air France-KLM fell 7.9 percent. Qantas and Singapore Airlines each lost around five percent.

There were sizeable gains for share prices of energy majors and defence companies, with BAE Systems jumping 6.3 percent in London and Palantir climbing 4.7 percent in New York.

Shell rose 2.7 percent and TotalEnergies 4.6 percent.

ExxonMobil shares added 2.6 percent as trading got underway in New York.

“If higher oil prices persist, it raises the risk of stickier headline inflation,” wrote Saxo Markets’ Charu Chanana.

This could prove troublesome for US President Donald Trump, who has promised his electorate low prices, as the United States approaches mid-term elections in November.

Rising energy prices, increased shipping costs and loss of revenue for air transport could have “a harmful effect on growth”, said economist Eric Dor from the IESEG School of Management in Paris.

“If it’s a matter of three days, it’s not serious. But if it’s over a longer period, then it will have an additional recessionary effect,” he told AFP.

In theory, oil-importing countries have reserves, with OECD members required to maintain 90 days’ worth of stocks, but prices above $100 cannot be ruled out according to analysts.

If the disruption at Hormuz continues, “no matter how much spare capacity, (it) is not going to fill that gap. That gap is just too big,” said Amena Bakr, head of Middle East and OPEC+ research at analysts Kpler.

Key members of the OPEC+ oil cartel on Sunday announced a greater-than-expected increase to production quotas.

– Key figures at around 1430 GMT –

Brent North Sea Crude: UP 8.8 percent at $79.30 per barrel

West Texas Intermediate: UP 7.8 percent at $72.26 per barrel

New York – Dow: DOWN 1.1 percent at 48,424.07 points

New York – S&P 500: DOWN 1.2 percent at 6,799.78

New York – Nasdaq Composite: DOWN 1.5 percent at 22,318.74

London – FTSE 100: DOWN 1.5 percent at 10,745.06

Paris – CAC 40: DOWN 2.3 percent at 8,396.07

Frankfurt – DAX: DOWN 2.7 percent at 24,603.05

Tokyo – Nikkei 225: DOWN 1.4 percent at 58,057.24 (close)

Hong Kong – Hang Seng Index: DOWN 2.1 percent at 26,059.85 (close)

Shanghai – Composite: UP 0.5 percent at 4,182.59 (close)

Euro/dollar: DOWN at $1.1704 from $1.1823 on Friday

Pound/dollar: DOWN at $1.3388 from $1.3486

Dollar/yen: UP at 157.55 yen from 156.03 yen

Euro/pound: DOWN at 87.44 pence from 87.67 pence