News that hardliner Mojtaba Khamenei had been chosen as Iran’s new Supreme Leader sent crude oil prices surging more than 30 percent in the span of a few hours Monday. Khamenei takes the place of his father, who held the position from 1989 until his death on Feb. 28 during Israeli and U.S. bombing raids on Tehran.

Oil future briefly approaching $120 per barrel before settling back to around $106 in early trading Monday, still more than 15 percent higher than at the close of markets on Friday and still the first time in four years prices topped the $100 per barrel threshold. 

Peak prices on Monday matched the price spike from the start of the Russia-Ukraine war, but the highs remained lower than those from the 2008 financial crisis, when prices reached $140 per barrel. 

The record-setting spike in prices is likely to have widespread impacts on the global economy, though Trump administration officials have sought to play down risks. Secretary of Energy Chris Write said the increases were due to “market fears” rather than to actual petroleum shortages. 

For his part, President Donald Trump said rising oil prices were “a small price to pay” for safety and peace. 

Meanwhile, the U.S. is one of the three countries in the Group of Seven nations pushing for the release of strategic oil reserves to increase oil supplies despite regional instability sparked by the Iran conflict.