Oil Prices Soar Above $100 as Middle East Tensions Escalate
Oil prices surged above $100 a barrel after attacks in the Middle East disrupted shipping and raised concerns about global energy supplies.
The price of oil, as measured by the Brent crude contract, jumped 2.4% to $100.29 early Wednesday, following a series of incidents that have threatened an already weakened supply chain.
One of these incidents involved the U.S. military striking five Iranian tankers in response to attempted missile attacks on a Navy warship and fires ignited at oil facilities in Saudi Arabia by an Iranian-backed Houthi rebel group.
The Strait of Hormuz, a narrow waterway through which a fifth of the world's oil supply passes, has been largely shut down due to fighting between the U.S. and Iran, leading to rising oil prices throughout the year.