Oil Prices Soar Past $100 a Barrel Amid Middle East Tensions
The price of oil has surpassed $100 a barrel for the first time in almost six weeks after attacks on oil facilities and ships in the Middle East. The Brent crude, the international standard, settled at $97.89 before jumping 2.4% to $100.29 early Wednesday.
The U.S. military reported striking five Iranian tankers in response to attempted missile attacks on a Navy warship, while an Iranian-backed Houthi rebel group ignited fires at oil facilities in Saudi Arabia.
Bank of America analysts increased their oil price forecast for the second half of the year to $83 a barrel 'in light of more persistent disruptions to Hormuz,' but said they still expected shipping through the strait to gradually pick up. If attacks continue, prices could reach $95-$120 a barrel, while damage to major energy infrastructure could produce spikes of up to $150 a barrel.