Oil prices climbed above $70 a barrel for the first time in four months on Monday amid fears that the US airstrike that killed Iran’s top military commander may trigger a retaliation and disrupt global energy supplies, according to The Guardian.

The Brent crude price hit $70.73 (£53.74), its highest level since Houthi rebels launched a drone attack on a major Saudi oil facility in September, with European stock markets also posting losses, including a decline of 0.6% on the FTSE 100 in London.

About a fifth of the global oil supply flows through the Strait of Hormuz, a narrow shipping route between Oman and Iran. It was targeted last year by Iran, which seized two oil tankers in the strait.

A prolonged oil price surge could raise the risk of a global economic recession and would increase the price of petrol at the pumps. However, market analysts at Goldman Sachs and UBS have cast doubt on whether oil prices will continue to rally beyond $70 a barrel because of strong production from outside the Middle East. Brent crude slipped back below $69 in later afternoon trading on Monday after touching its four-month high.

UBS expects the global oil market to be oversupplied this year because of rising production from the US and Norway, which would keep prices from staying above $70.