Oil Prices Cross $100 a Barrel Amid Escalating Middle East Tensions
Oil prices surged past $100 a barrel on Wednesday for the first time since July due to renewed fighting in the Middle East. The global benchmark, Brent crude, jumped nearly 3 percent to $100.72 a barrel in early trading.
The increase followed another round of attacks involving the US and Iran, with the US military striking five Iranian oil tankers on Tuesday. In response, Iran claimed it attacked 10 vessels and a US base in Jordan.
Oil shipments from the region have already been significantly reduced since the start of the six-month war, with traffic through the Strait of Hormuz remaining far below normal levels.
Experts warned that rising prices indicate growing market concerns over the vulnerability of oil exports and supply losses due to disruptions in the strait. PVM oil broker Tamas Varga said 'oil investors are expressing their view about the impact of the latest bout of escalation in the Middle East in an unambiguous way.'
The national average price of a gallon of gas increased to $4.22, and diesel prices have also continued to rise after reaching a record high over the weekend.