Oil Prices Soar Past $100 a Barrel Amid Middle East Tensions
The price of oil has surpassed $100 a barrel for the first time since July, following attacks on oil facilities and ships in the Middle East. Brent crude, the international standard, jumped nearly 3% to $100.72 early Wednesday.
The U.S. benchmark crude gained 2.4% to $95.25 a barrel, while U.S. gasoline prices rose sharply overnight. The average price for a gallon of regular gasoline ticked up 7 cents overnight to hit $4.22, now more than a dollar above what it cost at this point last year.
The attacks were in response to attempted missile attacks on a Navy warship and targeted oil facilities in Saudi Arabia by an Iranian-backed Houthi rebel group. This has 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 due to 'more persistent disruptions' in the region. However, they warned that prices could reach $95 to $120 a barrel if attacks continue, and up to $150 a barrel if major energy infrastructure is damaged.