Oil Prices Soar Past $100 a Barrel Amid Middle East Tensions
The price of oil has surged past $100 a barrel for the first time since July as tensions in the Middle East escalate. Brent crude, the international standard, jumped nearly 3% to $100.72 early Wednesday.
The recent wave of attacks on oil facilities and ships in the region has threatened to debilitate an already weakened supply chain. The US benchmark crude gained 2.4% to $95.25 a barrel, while U.S. gasoline prices rose sharply overnight, reaching a record high of $4.22 per gallon.
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 to Hormuz, but warned that if attacks continue, prices could reach $95 to $120 a barrel or even spike up to $150 a barrel in case of major energy infrastructure damage.