Oil prices jump as Iran war creates historic 'supply disruption'

The price of oil jumped more than 7%, as the war on Iran was "creating the largest supply disruption in the history of the global oil market."

The price of oil jumped more than 7% on Thursday, as the International Energy Agency said the U.S.-Israel war on Iran was "creating the largest supply disruption in the history of the global oil market."

Iran's new Supreme Leader also said on Thursday morning that the Strait of Hormuz, a critical transit point for oil tankers, should be shut, according to state TV.

Following those comments, the price of international Brent crude oil rose to more than $100 per barrel, while U.S. crude oil rose above $95.

Stocks tumbled on the ripple effects that the oil market disruption was causing. At the opening bell, the S&P 500 fell more than 1%, the Nasdaq fell 1.3% and the Dow fell 570 points.

U.S. crude oil prices have now risen more than 40% since the start of the war, bringing retail gas prices along with them. Since March 1, gas prices have risen nearly 70 cents to $3.59 per gallon on Thursday, according to GasBuddy.