Brent crude oil price tops $100 a barrel for first time in more than three and a half years

The price of Brent crude oil has topped $100 a barrel for the first time in more than three and a half years, as production and transportation in the Middle East are severely hampered by the war in Iran, the Associated Press reported.

The price of a barrel of Brent crude oil reached $101.19 shortly after trading resumed on the Chicago Mercantile Exchange - 9.2 percent higher than the average price of $92.69 at the close of trading on Friday.

West Texas Intermediate (West Texas Intermediate) was trading at $107.06 a barrel, up 16.2 percent from Friday.

Last week, U.S. crude oil rose 36 percent, while Brent crude, the European benchmark, rose 28 percent.

About 15 million barrels of crude oil, about 20 percent of global production, typically pass through the Strait of Hormuz daily, according to independent research firm Rystad Energy. However, the threat of Iranian missile and drone attacks has almost completely halted tanker traffic through the waterway.

Iraq, Kuwait and the United Arab Emirates have all cut production as their oil tanks fill up as they struggle to export crude.

Iran, Israel and the United States have also been attacking oil and gas facilities since the start of the war, further deepening supply concerns.

Over the weekend, the Israeli military struck Iranian oil storage facilities and an oil transshipment terminal. Iran exports about 1.6 million barrels of oil a day, mainly to China, which could be forced to seek alternative supplies if Iranian exports are halted. This is an additional factor that could push oil prices up.

The last time U.S. crude traded above $100 a barrel was on June 30, 2022, when it reached $105.76. For the “Brent“ variety, this last happened on July 29, 2022, when it was $104, the AP recalls.

In the United States, the price of a gallon of regular gasoline reached $3.45 in Sunday, or 47 cents more than a week earlier. Diesel is selling for $4.60 a gallon.