Oil Surges Past $100 a Barrel Amid Middle East Tensions
The price of oil has surpassed $100 a barrel for the first time in almost six weeks after attacks on oil facilities and ships in the Middle East. The most heavily traded contract for a barrel of Brent crude, the international standard, settled at $97.89 before jumping 2.4% to $100.29 early Wednesday.
The U.S. benchmark crude gained 1.9% to $94.77 a barrel. When oil prices spike, prices of gasoline, diesel, and jet fuel also rise, increasing the cost of traveling and transporting goods that must be transported quickly like fresh food or shipped long distances like furniture and appliances.
The attacks on oil facilities were carried out by an Iranian-backed Houthi rebel group, which ignited fires at oil facilities in Saudi Arabia. The U.S. military reported striking five Iranian tankers in response to attempted missile attacks on a Navy warship.