Oil Surges Past $100 Per Barrel Amid Ongoing Conflict
The price of oil has surpassed $100 per barrel for the first time since July following a series of attacks on oil facilities and ships in the Middle East. The average price for a gallon of regular gasoline rose to $4.22, up 7 cents from the previous day, while diesel prices hit an all-time high of $5.94 per gallon.
The recent surge in oil prices is attributed to the ongoing conflict between the US and Iran, which has disrupted shipping through the Strait of Hormuz. The US military reported striking five Iranian tankers in response to attempted missile attacks on a Navy warship, further escalating tensions.
Bank of America analysts predict that if attacks continue to disrupt traffic through the strait, oil prices could reach $95 to $120 per barrel or even spike to $150 per barrel if major energy infrastructure is damaged. The conflict has already had an outsized impact on consumers, businesses, and national economies this year.