The price of oil soared to nearly $120 a barrel on Monday after Israel struck Iran's energy infrastructure over the weekend and Tehran announced Mojtaba Khamenei as the country's new Supreme Leader.

The attacks, which marked a major escalation in the 10-day-old conflict, sent fresh fears throughout global energy markets, with Brent crude reaching $119.50 (€103.30) a barrel. It later retraced to around $100.

The worsening conflict raises the risk...