$100 a Barrel: Middle East Attacks Drive Up Oil Prices

The price of oil has surpassed $100 a barrel for the first time in almost six weeks following attacks on oil facilities and ships in the Middle East. The recent wave of attacks, which include strikes by Iranian-backed Houthi rebels on Saudi Aramco oil refineries and U.S. military actions against Iranian tankers, have threatened to debilitate an already weakened supply chain.

The most heavily traded contract for a barrel of Brent crude settled at $97.89 before jumping 2.4% to $100.29 early Wednesday. The price of U.S. benchmark crude gained 1.9% to $94.77 a barrel, with the spike in oil prices likely to increase the cost of gasoline, diesel, and jet fuel.

Bank of America analysts have increased their oil price forecast for the second half of the year to $83 a barrel due to 'more persistent disruptions to Hormuz.' However, they predict that if attacks continue, prices could reach $95-$120 a barrel or even spike up to $150 a barrel in case of major energy infrastructure damage.