Oil Surges Past $100 as Middle East Attacks Threaten Supply Chain

The price of oil has surpassed $100 a barrel for the first time since July, following attacks on oil facilities and ships in the Middle East that have threatened to debilitate an already weakened supply chain. Brent crude jumped nearly 3% to $100.72, while U.S. benchmark crude gained 2.4% to $95.25 a barrel. The average price for a gallon of regular gasoline ticked up 7 cents overnight to hit $4.22, now more than a dollar above what it cost at this point last year, according to AAA. Diesel prices, which can have an outsized impact on consumers, hit an all-time high of $5.94 a gallon, 9 cents higher than the record set on September 4. The attacks, which include the U.S. military striking five Iranian tankers and an Iranian-backed Houthi rebel group igniting fires at oil facilities in Saudi Arabia, have halted most shipping through the Strait of Hormuz, a narrow waterway through which a fifth of the world’s oil supply passed before the war began. The conflict has caused crude oil prices to fluctuate considerably, with prices swinging between $70 to $100 a barrel in March, April, and May, and between $72 and $102 in July. Bank of America analysts have increased their oil price forecast for the second half of the year to $83 a barrel, but warned that prices could reach $95 to $120 a barrel if attacks keep a chokehold on traffic, and up to $150 a barrel if major energy infrastructure is damaged. The rising energy costs have weighed on consumers, businesses, and national economies, particularly outside of the U.S., and may have an outsized impact on the upcoming U.S. midterm elections.