Oil Prices Soar Past $100 a Barrel Amid Middle East Tensions

The price of oil surged past $100 a barrel on Wednesday after US military strikes destroyed five Iranian tankers and Houthi attacks set oil facilities ablaze in Saudi Arabia.

According to U.S. Central Command, the strikes followed attempted Iranian missile attacks on a Navy warship. In response, CENTCOM said it destroyed the IRGC crude oil carriers M/T Kaviz, M/T Charminar, M/T Horizon 1, and M/T Riesco in the Gulf of Oman as well as M/T Derya near Kharg Island.

The most actively traded Brent crude contract settled at $97.89 a barrel before rising 2.4% to $100.29 early Wednesday. U.S. benchmark crude gained 1.9% to $94.77 a barrel, while the average price of regular gasoline nationwide was $4.15 per gallon, up 26% from a year earlier.

Saudi Arabia's oil facilities were set ablaze in Houthi attacks, further contributing to the surge in oil prices. Secretary of State Marco Rubio stated that 'behind some of this is clearly the Iranian hand', and that 'the Houthis are in many ways, agents and proxies of the Iranians'.