Oil Prices Soar Above $100 as Middle East Tensions Escalate
Oil prices surged above $100 a barrel for the first time in nearly six weeks after attacks on oil facilities and ships in the Middle East raised concerns about global energy supplies.
The price of Brent crude, the international standard, jumped 2.4% to $100.29 early Wednesday, while US benchmark crude gained 1.9% to $94.77 a barrel.
Market volatility has been ongoing since the US military reported striking 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.
The Strait of Hormuz, a narrow waterway through which a fifth of the world's oil supply passes, has been disrupted due to fighting between the US and Iran. Analysts predict that if shipping through the strait remains halted, prices could reach $95-$120 a barrel or even spike up to $150 a barrel.
The effects on consumers are already being felt, with gasoline averaging $4.15 a gallon in the US, up 26% from last year, and diesel costing 59% more than the same day a year ago.