NEW YORK (AP) — Oil prices climbed again Thursday because of the war with Iran, tightening their grip on the global economy and sending stock markets lower around the world.

Brent crude, the international standard, briefly rose above $119 per barrel in the morning before pulling back to $110.90, which is still a 3.2% rise from the prior day. A barrel of benchmark U.S. crude added 2.2% to $98.40 after Iran intensified its attacks on oil and gas facilities around the Persian Gulf in response to an Israeli attack on an important Iranian natural gas field.

The attacks added to fears that fighting may knock out production of oil and gas in the Gulf for a long time, which would mean high prices could last a while and cause inflation to rip higher around the world.

Stock indexes dropped 3.4% in Japan, 2.7% in South Korea, 2.8% in Germany and 2.3% in the United Kingdom. On Wall Street, where trading began after Brent crude’s price pared its big gain and where companies are less reliant on oil from the Gulf, the losses were more modest.

The S&P 500 fell 0.7% and is on track for a fourth straight losing week, which would be its longest such streak in a year. The Dow Jones Industrial Average was down 418 points, or 0.9%, as of 12:55 p.m. Eastern time, and the Nasdaq composite was 0.8% lower.

President Donald Trump and countries around the world have made moves to stem the spike in oil prices, but they’re mostly short-term fixes when markets want to see less risk for oil and gas fields around the Gulf and a clearance of the Strait of Hormuz off Iran’s coast, where a fifth of the world’s oil typically sails.

Worries are so high about oil prices that traders are now even betting on a slim chance that the Federal Reserve may have to hike interest rates this year. It’s a dramatic turnaround from before the war, when traders were betting heavily that the Fed would cut rates multiple times this year.

Cuts to rates would give the economy and prices for investments a boost, and they’re something Trump has angrily been calling for, but they would risk worsening inflation. The Fed decided to hold off cutting interest rates, and traders found comments from Chair Jerome Powell discouraging