Oil surges past $100 a barrel after fresh Middle East attacks

(TNND) — The price of oil surged past $100 a barrel Wednesday, its highest level in more than six weeks, after U.S. military strikes destroyed five Iranian tankers and Houthi attacks set oil facilities ablaze in Saudi Arabia.

U.S. Central Command said the strikes followed attempted Iranian missile attacks on a Navy warship.

“In response to Iran’s most recent failed attacks, CENTCOM destroyed the IRGC crude oil carriers M/T Kaviz, M/T Charminar, M/T Horizon 1, and M/T Riesco in the Gulf of Oman as well as M/T Derya near Kharg Island,” CENTCOM said. “American forces directed the crews to abandon ship before the vessels were struck and rendered inoperable.”

Military officials said Iran used the vessels as part of a multibillion-dollar shadow network that funds the Islamic Revolutionary Guard Corps and its regional proxies.

Secretary of State Marco Rubio said Tuesday the Houthis are “in many ways, agents and proxies of the Iranians,” and that “behind some of this is clearly the Iranian hand.” He said the U.S. has a “very strong defensive, military relationship with Saudi Arabia” and was closely monitoring the attacks.

The most actively traded Brent crude contract, the international benchmark, had settled at $97.89 a barrel before rising 2.4% to $100.29 early Wednesday. U.S. benchmark crude gained 1.9% to $94.77 a barrel.

A gallon of regular gasoline averaged $4.15 nationwide Tuesday, up 26% from a year earlier, according to AAA. Diesel averaged $5.90 a gallon, 59% more than the same day last year.

Higher oil prices have also raised jet-fuel costs, one of the airline industry’s largest expenses. U.S. and international carriers have responded by cutting flights and increasing fares and fees.

Crude prices have swung sharply since Israel and the United States launched their war with Iran more than six months ago. The fighting has halted most shipping through the Strait of Hormuz, the narrow waterway that carried about one-fifth of the world’s oil supply before the war.

Negotiations over a preliminary U.S.-Iran deal to end the conflict broke down over control of the strait. Iran says it has the right to set terms and charge fees for ships using the waterway off its coast. The U.S. has insisted passage remain free and used a Navy blockade to restrict access to Iranian ports and oil tankers.