Analysts warned on Monday that there was no precedent for the surging price of oil, as the Middle East crisis deepens fears of prolonged production shut-ins and disruption to shipments through the strategically vital Strait of Hormuz.

Oil prices were on track for their biggest-ever jump in a single day on Monday, before significantly paring gains, following a fresh wave of U.S. and Israeli strikes across Iran over the weekend. Oil depots were among the targets.

International benchmark Brent crude futures with May delivery traded 12.8% higher at $104.53 per barrel on Monday morning, while U.S. West Texas Intermediate futures with April delivery were last seen nearly 12% higher at $101.76.

Brent futures had climbed as high as $119.5 per barrel earlier in the trading day, while WTI hit a session high of $119.48.

Neil Atkinson, former head of oil at the International Energy Agency, said the effective closure of the Strait of Hormuz is something energy markets had never seen before. Unless something changes very soon “we are in a potentially game-changing and unprecedented energy crisis,” he told CNBC on Monday.

Countries across the oil-rich Middle East region have started to scale back crude output. Iraq and Kuwait have already begun to shut-in production, with analysts warning that the United Arab Emirates and Saudi Arabia may also be vulnerable if the Strait of Hormuz remains closed for a sustained period.

“Though there are oil stocks around the world, the point is that if this closure of the Strait persists, those oil stocks if they are deployed will be depleted and we are going to be in a situation where, with the oil production actually shut in, in Iraq and possibly in Kuwait and maybe even in time in Saudi Arabia, that we are going to be in a crisis the likes of which we have never seen before,” Atkinson told CNBC’s “Squawk Box Europe.”

Asked what this could mean for oil prices, Atkinson replied: “Sorry, we are getting into the realms of educated guesswork here. I mean, there is no precedent for this. The sky is the limit.”

Typically, about 20% of the world’s oil and gas passes through the Strait of Hormuz, but shipping traffic has all but halted through this key maritime corridor since the war started.

Oil prices came off their session highs on Monday shortly after the Financial Times reported that finance ministers from G7 economies would hold an emergency meeting on Monday to discuss a possible joint release of petroleum from reserves coordinated by the IEA.

The U.K.’s Treasury and French government confirmed to CNBC that the call would take place on Monday.

Tyler Goodspeed, chief economist at ExxonMobil, told CNBC’s “Squawk Box Europe” on Monday that it had been “consensus last week, and to a certain extent still today,” that everyone but Russia had “an interest in normal traffic resuming through the Strait of Hormuz.”

He added the consensus had been that there was “abundant oil on the water and some strategic reserves to cover any short-term gap.” Goodspeed said he was skeptical of this view as the conflict enters its second week.

“When I think of the probability distribution of possible outcomes here, it seems to me there are many more scenarios, and more probable scenarios, in which the strait remains effectively closed harder for longer than there are scenarios in which normal traffic resumes,” Goodspeed said.

Analysts at Societe Generale, meanwhile, warned that prolonged production shut-ins from Middle East countries “materially increase” the risk of restart complications.

“The UAE is likely the next producer at risk of shutting in output, potentially within the next five to seven days,” the analysts said in a research note published Monday.

“Qatar is also vulnerable, though its oil volumes are modest relative to its LNG exposure. Saudi Arabia faces less immediate risk but shut ins would become plausible if the Strait of Hormuz remains closed for a further two to three weeks,” they added.

— CNBC’s Holly Ellyatt contributed to this report.

Iran’s Kharg Island, a small but strategically vital strip of land nestled in the waters of the northern Persian Gulf, has been left untouched by U.S. and Israeli forces even as the Middle East conflict enters its second week.

The coral island, which is located about 15 miles off the coast of mainland Iran, serves as the centerpiece for Iran’s oil industry.

It is estimated that around 90% of the country’s crude exports pass through it before tankers then travel through the Strait of Hormuz. The island is also said to have a loading capacity of roughly 7 million barrels per day.

Kharg Island’s economic importance to Iran makes it particularly vulnerable to the threat of military action, although analysts say that any attempt to seize it would likely require a ground troop operation, which the U.S. appears reluctant to undertake.

An attack would also likely prompt further energy market volatility at a time when oil prices have soared to more than $100 a barrel.

Seizing the island “would cut off Iran’s oil lifeline,” which is essential for the regime, according to Petras Katinas, a research fellow in climate, energy and defense at RUSI, a London-based defense think tank.

“Of course, with shipping via the Strait of Hormuz now stopped, they cannot sell oil anyway, but looking ahead, seizure would give the US leverage during negotiations, no matter which regime is in power after the military operation ends,” Katinas told CNBC by email.

“Yet, seizure, would require a ground troop operation, which this administration seems hesitant to undertake. At least for now,” he added.

Crude futures climbed to their highest level since mid-2022 on Monday after the U.S. and Israel launched a fresh wave of strikes across Iran over the weekend.

The attacks struck several Iranian fuel sites, including oil storage depots, signaling a new phase of the war as the sprawling Middle East crisis continues into its tenth day.

International benchmark Brent crude futures with May delivery traded nearly 16% higher at $107.18 per barrel on Monday morning, paring earlier gains, while U.S. West Texas Intermediate futures with April delivery were last seen 12.5% higher at $102.1.

“If President Trump were to decide to seize this pivotal hub, it would deal a significant blow to the Iranian regime, as it would deprive them of a critical source of revenue. Such a move would be reminiscent of the U.S. intervention in Venezuela at the beginning of the year, when it effectively took control of the country’s oil sector,” Tamas Varga, an oil analyst at brokerage PVM, told CNBC By email.

An attempt to seize the island would require U.S. troops on the ground and likely see it become a multi-week target for Iranian drones, Gustafson said in a LinkedIn post last week.

He also warned it could push oil prices up even further and Tehran may even consider an act of self-sabotage to destroy the oil pipeline that feeds it.

“There is one concept or one dimension of this that no one seemingly has mentioned, which is Kharg Island,” Jan van Eck, CEO of VanEck Funds, told CNBC’s “Power Lunch” on March 2.

“It’s where 90% of Iran’s oil gets exported out of — that is a choke point. And if you think that Trump just follows the same playbook that he did in Venezuela. What did he do? He cut off their oil exports, their hard currency, and I think he is going to want that leverage point going forward,” Van Eck said.