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.

U.S. gasoline prices rose sharply overnight, with the average price for a gallon of regular gasoline ticking up 7 cents to hit $4.22, now more than a dollar above what it cost at this point last year, according to AAA. Diesel prices have also continued to climb since reaching an all-time high on Friday, with the average price for a gallon reaching $5.94 overnight.

The recent attacks by Iran-backed Houthi rebels and the U.S. military's response have raised concerns about global oil supplies, particularly through the Strait of Hormuz, which accounts for a fifth of the world's oil supply. Bank of America analysts increased their oil price forecast to $83 a barrel due to 'more persistent disruptions' to Hormuz, but warned that prices could reach $95 to $120 a barrel if attacks continue.