Oil Price Surges Past $100 Barrel Amid Ongoing Middle East Tensions
The price of oil surged past $100 a barrel for the first time in almost six weeks after a series of attacks on Middle East oil facilities and ships threatened to disrupt an already weakened supply chain.
The most heavily traded contract for Brent crude, the international standard, jumped 2.4% to $100.29 early Wednesday morning, while U.S. benchmark crude gained 1.9% to $94.77 a barrel.
The attacks on oil facilities and ships in the Middle East, including those by Iranian-backed Houthi rebel groups and a US Navy blockade of Iran's ports, have pushed up energy costs for consumers and businesses around the world.
Bank of America analysts increased their oil price forecast to $83 a barrel for the second half of the year due to 'more persistent disruptions to Hormuz,' but said prices could reach $95-$120 a barrel if attacks continue to choke traffic through the Strait of Hormuz, and up to $150 a barrel in case of damage to major energy infrastructure.