Oil Prices Soar Past $100 a Barrel Amid Ongoing Middle East Tensions
The price of oil has surged past $100 a barrel for the first time in almost six weeks, driven by attacks on oil facilities and ships in the Middle East. The Brent crude benchmark rose 2.4% to $100.29 after US military strikes on five Iranian tankers in response to attempted missile attacks.
The recent wave of attacks has put further pressure on an already weakened supply chain, which was already struggling due to the ongoing conflict between the US and Iran. The Strait of Hormuz, a narrow waterway through which a fifth of the world's oil supply passes, remains closed due to the fighting.
Bank of America analysts increased their oil price forecast for the second half of the year to $83 a barrel, citing more persistent disruptions to Hormuz. However, if attacks continue to choke off traffic, prices could reach $95-$120 a barrel, while damage to major energy infrastructure could produce spikes of up to $150 a barrel.