Oil Surges Past $100 a Barrel Amid Ongoing Middle East Tensions
The price of oil has surpassed $100 a barrel for the first time in almost six weeks due to attacks on oil facilities and ships in the Middle East. The Brent crude contract, which is the most heavily traded, 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, it can increase the cost of traveling and goods that must be transported quickly like fresh food or shipped long distances like furniture and appliances.
The recent attacks were in response to attempted missile attacks on a Navy warship 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 the same area.