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 over six weeks, after a series of attacks on Saudi Aramco facilities and Iranian tankers. The increase was triggered by U.S. military strikes that destroyed five Iranian vessels, including those used as part of a multibillion-dollar shadow network funding the Islamic Revolutionary Guard Corps.
Secretary of State Marco Rubio stated that the Houthi rebels are 'in many ways, agents and proxies of the Iranians,' with Iran's involvement evident in some of these attacks. This has led to heightened tensions between the U.S. and Saudi Arabia, as well as increased military cooperation between the two nations.
The Brent crude contract, the international benchmark, rose 2.4% to $100.29 early Wednesday, while U.S. benchmark crude gained 1.9% to $94.77 a barrel. The higher oil prices have led to significant increases in gasoline and diesel costs, with regular gasoline averaging $4.15 nationwide and diesel at $5.90 a gallon.
U.S. and international carriers have responded by cutting flights and increasing fares and fees due to the higher jet-fuel costs. The conflict has halted most shipping through the Strait of Hormuz, which carried about one-fifth of the world's oil supply before the war broke out six months ago.