Oil Prices Spike Above $100 as Iran Tankers Destroyed

The price of oil surged past $100 a barrel on Wednesday, its highest level in more than six weeks. The increase followed U.S. military strikes that destroyed five Iranian tankers and Houthi attacks that set oil facilities ablaze in Saudi Arabia.

U.S. Central Command said the strikes targeted vessels used by Iran as part of a multibillion-dollar shadow network that funds the Islamic Revolutionary Guard Corps and its regional proxies. The network's use of crude oil carriers for illicit purposes has been a major concern for the U.S. government, with Secretary of State Marco Rubio stating that 'behind some of this is clearly the Iranian hand.'

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 increase in oil prices has already led to higher costs for jet fuel, with airlines responding by cutting flights and increasing fares and fees.