New York: The price of oil surpassed USD 100 a barrel for the first time in almost six weeks after attacks on oil facilities and ships in the Middle East threatened to debilitate an already weakened supply chain.
The most heavily traded contract for a barrel of Brent crude, the international standard, settled at USD 97.89 before briefly climbing past USD 100 early Wednesday.
When oil prices spike, prices of gasoline, diesel and jet fuel also rise. That can increase the cost of travelling and of goods that must be transported quickly, like fresh food or shipped long distances, like furniture and appliances.
Also Read : Houthi attacks on Saudi Arabia ignite fires at oil facilities and wound 73 people, officials say
Markets reacted after the US military reported striking five Iranian tankers in response to attempted missile attacks on a Navy warship and after attacks by an Iranian-backed Houthi rebel group ignited fires at oil facilities in Saudi Arabia.
