Oil prices could reach record highs, analysts warn. Here's what it could mean for the U.S. economy.

Intensifying violence in the Middle East could send oil prices careening above their all-time high, raising the risk of higher inflation and slower economic growth, experts said. Edited by Aimee Picchi In:

Intensifying violence in the Middle East could send oil prices careening above their all-time high, raising the risk of higher inflation and slower economic growth, experts said.

"The biggest hit will be the consumer," said Ryan Sweet, a chief global economist at Oxford Economics. "To kind of put it into context, every penny increase in gasoline prices reduces consumer spending by one and a half billion dollars over the course of a year."

Brent crude briefly topped $119 a barrel on Thursday after fresh attacks on energy infrastructure, and analysts say prices could climb much higher if supply disruptions worsen — a shift that would push up gas prices, squeeze household budgets and ripple across the broader economy.

Consumers are already feeling the impact at the pump, where average gasoline prices are now almost $1 higher than they were before the war started. On Thursday, prices reached $3.88 per gallon, according to data from AAA. At the same time, the cost of jet fuel is rising, leading some carriers to hike their ticket prices.

Oil prices hit record highs in July 2008, when both Brent and West Texas Intermediate, the U.S. benchmark, reached around $145 per barrel, or about $215 a barrel on an inflation-adjusted basis, according to data from FactSet.