Oil Prices Surpass $100 a Barrel Amid Middle East Disruptions
Oil prices have surged past $100 a barrel for the first time in almost six weeks due to disruptions in shipping and concerns over tighter global energy supplies.
The price of Brent crude, the international standard, settled at $97.89 before jumping 2.4% to $100.29 on Wednesday.
The US military reported striking five Iranian tankers in response to attempted missile attacks on a Navy warship and after attacks by an Iranian-backed Houthi rebel group ignited fires at oil facilities in Saudi Arabia.
This has halted most shipping through the Strait of Hormuz, a narrow waterway through which a fifth of the world's oil supply passes.
Bank of America analysts increased their oil price forecast for the second half of the year to $83 a barrel due to more persistent disruptions to Hormuz and said prices could reach $95-$120 a barrel if attacks keep traffic constrained.