Oil prices passed $100 per barrel on Sunday as the U.S.-Israeli war against Iran disrupts production and shipping in the Middle East.
This is the first time in nearly four years that oil prices reached this mark.
The price for a barrel of Brent crude, the international standard, rose to more than $107 after trading resumed on the Chicago Mercantile Exchange, a 16.5% jump from its Friday closing price of $92.69.
West Texas Intermediate, produced in the U.S., was up to about $106.22 a barrel, a 16.9% increase from when it closed on Friday at $90.90.
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This comes after Brent climbed 28% and WTI rose 36% last week prior to the latest upticks.
Oil prices have jumped as the war impacts areas crucial to the production and shipping of oil and gas from the Persian Gulf.
About 15 million barrels of crude oil, which makes up about 20% of the oil around the world, are typically moved daily through the Strait of Hormuz, according to independent research firm Rystad Energy.
Concerns about Iranian missile and drone strikes have stalled tankers that would otherwise be traveling through the strait, which carry oil and gas from Middle East countries such as Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran.
Iraq, Kuwait and the UAE have dropped their oil production over the strained ability to export crude.
Saudi Arabia is increasing shipments from the Red Sea, but the volumes are not enough to offset the dip from the Strait of Hormuz, according to shipping data.
Iran, Israel and the U.S. have attacked oil and gas facilities since the war began late last month.
The war could leave consumers and businesses around the world with weeks or even months of higher fuel prices, even if the conflict ends quickly, as suppliers deal with damaged facilities, disrupted logistics and elevated risks to shipping.
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The last time U.S. crude futures traded over $100 per barrel was the summer of 2022.
The average gallon of regular gasoline in the U.S. also increased on Sunday to $3.45, representing a 47-cent jump from about a week earlier, according to AAA motor club. Diesel was also selling for an average of about $4.60 a gallon, an increase of about 83 cents from the previous week.
Reuters contributed to this report.
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