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

The price of oil has surpassed $100 a barrel for the first time since July due to ongoing attacks on oil facilities and ships in the Middle East. The Brent crude, the international standard, jumped nearly 3% to $100.72 early Wednesday.

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 stepped-up attacks by Yemen's Houthis targeted an alternative shipping route that Saudi Arabia has relied on to transport oil during the war. Bank of America analysts said they 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 warned prices could reach $95 to $120 a barrel if attacks keep a chokehold on traffic.

Negotiations over a preliminary deal between the U.S. and Iran to end the conflict broke down over control of the Strait of Hormuz, which is a critical waterway for oil shipments. If damage to major energy infrastructure occurs, prices could spike up to $150 a barrel, according to the analysts.