Middle East Tensions Send Oil Prices Soaring Past $100 a Barrel
Oil prices have surged back above $100 a barrel for the first time since July due to ongoing tensions in the Middle East. The Brent crude benchmark rose nearly 3% to $100.72 on Wednesday, while U.S. benchmark crude gained 2.4% to $95.25.
The price increases were triggered by attacks on oil facilities and ships in the region, which have threatened to disrupt an already weakened supply chain. The average price for a gallon of regular gasoline has risen sharply overnight, reaching $4.22, while diesel prices hit an all-time high of $5.94 per gallon.
Markets reacted to news that the U.S. military had struck five Iranian tankers in response to attempted missile attacks on a Navy warship and after attacks by an Iranian-backed Houthi rebel group ignited fires at oil facilities in Saudi Arabia.