Oil rises past $100 a barrel after latest Middle East attacks

Oil prices climbed above $100 per barrel Wednesday for the first time since July as renewed fighting in the Middle East raised concerns about further disruptions to global energy supplies.

Brent crude , the global benchmark, jumped nearly 3 percent to $100.72 per barrel in early trading, crossing $100 for the first time since late July.

U.S. benchmark West Texas Intermediate crude rose 2.4 percent to $95.25 per barrel. The national average price of a gallon of gas also increased to $4.22 as of Wednesday morning, according to AAA .

The price of regular gas rose 7 cents overnight to more than $1 higher than its level a year ago. Diesel prices have also continued to rise after reaching a record high over the weekend, the numbers show.

The increase followed another round of attacks involving the U.S. and Iran. The U.S. military struck five Iranian oil tankers Tuesday, prompting Iran to say Wednesday that it attacked 10 vessels and a U.S. base in Jordan in retaliation.

Oil shipments from the region were already reduced significantly since the start of the war in late February. Traffic through the Strait of Hormuz , a key shipping route through which about 20 percent of global energy supplies once passed through, has remained far below normal levels as the fighting continues.

Experts warned that the rising prices indicate growing market concerns over the vulnerability of oil exports and supply losses due to disruptions in the strait.

The rise in energy prices comes just weeks before the midterm elections, where Republicans seek to tighten their economic messaging to maintain their narrow majorities in the House and Senate. Gas prices above $4 per gallon have put additional focus on energy costs and inflation for voters heading into November.

“Oil investors are expressing their view about ​the impact of the latest bout of escalation in the Middle East in an unambiguous way,” PVM oil broker Tamas Varga told Reuters .

“They ⁠are voting with their dollar, and this vote strongly indicates that unless the Strait of Hormuz re-opens, and oil starts flowing again uninterruptedly, supply will not be aligned with demand ​in the foreseeable future,” Varga added.