Brent crude prices jumped about 4% on Thursday as fresh tensions in the Middle East raised fears of supply disruptions. The spike came amid renewed US pressure on Iran, including fresh sanctions on entities trading Iranian petroleum products.

Oil markets are sensitive to any threat to flows through the Strait of Hormuz, which carries a fifth of the world’s oil. The rise in crude is a worry for India, which imports most of its oil and faces a higher import bill when prices climb.

Fuel retailers and airlines also feel the pinch as input costs rise. Later in the day, prices cooled slightly after Trump said the US would not strike Iran before the November midterms.

Analysts said volatility will stay high as traders track US-Iran talks and OPEC supply decisions. Any escalation could push prices higher still.

India imports over 85% of its crude oil needs, so every sustained $10 rise in prices adds billions of dollars to the import bill. The government has so far shielded retail fuel prices, but refiners’ margins come under pressure when crude spikes.