Oil Prices Surge Above $100 Amid Middle East Tensions

Oil prices surged above $100 a barrel after attacks on oil facilities and ships in the Middle East disrupted shipping and raised fears of tighter global energy supplies.

The price spike comes after the U.S. military reported striking five Iranian tankers in response to attempted missile attacks on a Navy warship, and attacks by an Iranian-backed Houthi rebel group ignited fires at oil facilities in Saudi Arabia.

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', but warned that prices could reach $95-$120 a barrel if attacks continue and major energy infrastructure is damaged.