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

The price of oil surged past $100 a barrel for the first time since July after a wave of attacks on oil facilities and ships in the Middle East. The 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, while U.S. gasoline prices rose sharply overnight. The average price for a gallon of regular gasoline ticked up 7 cents overnight to hit $4.22, now more than a dollar above what it cost at this point last year, according to AAA.

The recent attacks by the Iranian-backed Houthi rebel group on oil facilities in Saudi Arabia and the U.S. military's strike on five Iranian tankers have threatened to debilitate an already weakened supply chain. The disruptions have pushed diesel prices to an all-time high, reaching $5.94 overnight.

Bank of America analysts expect shipping through the Strait of Hormuz to gradually pick up, but if attacks keep a chokehold on traffic, prices could reach $95 to $120 a barrel. Damage to major energy infrastructure could produce spikes of up to $150 a barrel.