Largest oil disruption in history amid Middle East conflict

A historic disruption to the world’s oil production sent crude prices smashing through the $100 barrier Monday for the first time in nearly four years, CNN writes.

The publication notes that as the war with Iran drags on, oil futures could have considerably more room to run even higher.

The war with Iran has sent oil prices higher for two primary reasons: a near shutdown of the Strait of Hormuz and a slowdown in oil production in the Middle East.

The Strait of Hormuz is a narrow waterway through which 20% of the world’s oil travels via tankers. Iran has threatened to attack any tanker transiting the strait. That has led to a standstill in oil pickups and deliveries in the region.

The estimated 20% of disrupted supply is roughly twice as big as the record set during the Suez Crisis of 1956-1957, according to historical data from Rapidan Energy Group.

As oil prices have surged, so too have gasoline prices. US gas prices have risen about 50 cents in a week to $3.48 a gallon, higher than at any point in either of President Donald Trump’s terms.