Oil Prices Skyrocket Past $100 a Barrel Amid Middle East Tensions

The price of oil surged past $100 a barrel on Wednesday, its highest level in over six weeks, following U.S. military strikes that destroyed five Iranian tankers and Houthi attacks that set oil facilities ablaze in Saudi Arabia.

The U.S. Central Command announced the strikes, stating they were in response to attempted Iranian missile attacks on a Navy warship. The military officials said Iran used the vessels as part of a multibillion-dollar shadow network that funds the Islamic Revolutionary Guard Corps and its regional proxies.

Secretary of State Marco Rubio commented that the Houthis are 'in many ways, agents and proxies of the Iranians,' and that 'behind some of this is clearly the Iranian hand.' He also mentioned the U.S. has a 'very strong defensive, military relationship with Saudi Arabia' and was closely monitoring the attacks.

The Brent crude contract, the international benchmark, rose 2.4% to $100.29 early Wednesday, while U.S. benchmark crude gained 1.9% to $94.77 a barrel. The higher oil prices have also raised jet-fuel costs, leading to flight cuts and increased fares by airlines.