The price of oil in international markets has risen to around $100 per barrel. Several major countries have released millions of barrels of oil from reserves to lower the price, but analysts say this is only a temporary solution.
Tensions have also risen over the situation in the Strait of Hormuz, a vital oil shipping route. Explosions have been reported on tankers in the Persian Gulf, while Iran has stepped up attacks on ships.
Iranian authorities warned that the price of oil could reach up to $200 per barrel.
Meanwhile, the conflict in the region is escalating: Israel has carried out attacks on Hezbollah targets in Beirut, while Saudi Arabia said it has shot down several drones.
US President Donald Trump declared that his country is "not done yet" with Iran, adding to concerns about the impact the conflict could have on the economy and the cost of living.
