Oil Prices Soar Above $100 a Barrel Amid Middle East Tensions

The price of oil has surpassed $100 a barrel for the first time in almost six weeks due to attacks on oil facilities and ships in the Middle East. The most heavily traded contract for Brent crude settled at $97.89 before jumping 2.4% to $100.29 early Wednesday.

U.S. benchmark crude gained 1.9% to $94.77 a barrel, following reports of U.S. military strikes on five Iranian tankers in response to attempted missile attacks on a Navy warship and Houthi rebel group attacks on oil facilities in Saudi Arabia.

The disruptions have halted most shipping through the Strait of Hormuz, a narrow waterway through which a fifth of the world's oil supply passed before the conflict began. Bank of America analysts increased their oil price forecast for the second half of the year to $83 a barrel 'in light of more persistent disruptions to Hormuz.'

However, they also warned that if attacks continue to choke off traffic, prices could reach $95-$120 a barrel, while damage to major energy infrastructure could produce spikes of up to $150 a barrel.