Oil Prices Surge Past $100 After Iranian Tanker Strike

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 set oil facilities ablaze in Saudi Arabia.

The strikes targeted vessels used by Iran to fund the Islamic Revolutionary Guard Corps and its regional proxies. Secretary of State Marco Rubio said the Houthis are 'in many ways, agents and proxies of the Iranians,' and that 'behind some of this is clearly the Iranian hand.'

The U.S. has a 'very strong defensive, military relationship with Saudi Arabia' and was closely monitoring the attacks. The most actively traded Brent crude contract rose 2.4% to $100.29 early Wednesday, while the U.S. benchmark crude gained 1.9% to $94.77 a barrel.

A gallon of regular gasoline averaged $4.15 nationwide on Tuesday, up 26% from a year earlier, according to AAA. Diesel averaged $5.90 a gallon, 59% more than the same day last year. Higher oil prices have also raised jet-fuel costs, leading U.S. and international carriers to cut flights and increase fares and fees.