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Oil prices surged past $100 per barrel on Wednesday after a series of attacks in the Middle East, with Brent crude futures trading at $99.93 a barrel and U.S. West Texas Intermediate crude at $94.52 a barrel. The price hike comes as tensions between the US and Iran continue to escalate, with the US striking five Iranian oil tankers on Tuesday and Iran launching missiles at US targets in Jordan.
Saudi Arabia reported that its energy infrastructure was attacked by the Houthis, causing temporary pauses in operations and injuring 73 civilians. Saudi Arabia is the world's largest oil exporter, and the attacks have raised concerns about the security of global oil supplies.
The Strait of Hormuz has become a key concern, with just four ships passing through the waterway on Saturday and six on Sunday. Before the war, the strait carried more than 20% of the world's energy supply as oil was shipped to ports around the globe.
In response to the attacks, the US Central Command said it destroyed five Iranian tankers, warning crews to abandon ship before striking. Iran has launched missiles at US targets in Jordan and warned tankers near Kuwait and Bahrain to evacuate.
The price of oil has been rising steadily since the start of the Iran war on February 28, with Brent crude surging as high as $126.41 a barrel on April 30. The global price of oil topped $100 a barrel for the first time since July, adding to uncertainty over future supply.
Meanwhile, a gallon of regular gasoline averaged $4.15 in the US on Tuesday, up 26% from a year ago.
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