Oil prices rose by over $1 today as reports that the US military struck Iranian targets in Syria raised concerns of a widening of the Israel-Hamas conflict that could impact supply from the key Middle East-producing region.

The strikes on two facilities in eastern Syria used by Iran’s Islamic Revolutionary Guard Corps and groups it allegedly backs were in response to recent attacks on US troops in Iraq and Syria, the Pentagon said on Thursday. Those attacks have increased since the start of the Israel-Hamas conflict on Oct 7.

Though the strike did not directly impact supply, it increases fears that the conflict in the Gaza Strip between Israel, backed by the US, and Hamas may spread and disrupt supply from major crude producer Iran. A wider war could also impact shipments from Saudi Arabia, the world’s largest oil exporter, and other large producers in the Gulf.