Oil prices were popping early Wednesday morning after Iran said U.S. and Israeli airstrikes hit one of its key natural gas field, while nearby oil and petrochemical facilities also came under attack.

Brent crude futures, the global oil benchmark, were rising 2.4% to $105.94 a barrel, while U.S. West Texas Intermediate crude futures were up 0.2% to $95.74 a barrel, according to FactSet data.

Oil prices have spiked ever since Israel and the U.S. began attacking Iran earlier this month, and Tehran responded by all but closing the Strait of Hormuz, through which much of the region’s oil is transported, while also targeting energy infrastructure in the Persian Gulf.

The seemingly calmer tone in the energy sector on Wednesday morning also came as Iraq had resumed oil exports from its Kirkuk field to Turkey’s Ceyhan port via pipeline, easing concerns that supplies from the region would remain severely restricted.

“This is leading to hopes that a severe, prolonged oil shock will not materialize, as more crude supplies are able to filter out of the region through other routes, while Iran continues to allow tankers heading for China, India and Pakistan to use the Strait,” said Susannah Streeter, chief investment strategist at Wealth Club.

“Hopes have also risen slightly for more diplomatic moves to come, which could force a faster end to the fighting,” Streeter added.

This higher price equilibrium reflects lingering concerns among some analysts that the Strait of Hormuz will need to be fully opened for oil prices to fall back to levels seen before the Iran war began. Brent was around $70 a barrel on Feb. 25.

“The Strait of Hormuz remains effectively closed, with only limited vessel traffic navigating the chokepoint under persistent security threats,” said Ole Hansen, head of commodity strategy at Saxo.

“While pipeline flows from Saudi Arabia and the UAE, along with resumed exports via Turkey from northern Iraq, have provided partial relief, these alternatives cannot fully replace the flexibility and scale of seaborne flows through the Gulf,” Hansen added.