Oil Prices Soar Past $100 a Barrel Amid Middle East Attacks
The price of oil has surpassed $100 a barrel for the first time since July due to attacks on oil facilities and ships in the Middle East. The latest wave of attacks, which include strikes by the US military on Iranian tankers and fires at Saudi Aramco oil refineries, have raised concerns about the already weakened supply chain.
Brent crude, the international standard, jumped nearly 3% to $100.72 early Wednesday, while U.S. benchmark crude gained 2.4% to $95.25 a barrel. The average price for a gallon of regular gasoline rose sharply overnight to hit $4.22, with diesel prices reaching an all-time high of $5.94.
Markets reacted after 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 analysts from Bank of America increased their oil price forecast for the second half of the year to $83 a barrel due to more persistent disruptions to the Strait of Hormuz, but warned that if attacks continue, prices could reach $95 to $120 a barrel or even spike up to $150 a barrel.