The global price of oil reached $100 a barrel on Wednesday for the first time since July, driven by escalating Middle East tensions. The benchmark Brent crude and U.S. West Texas Intermediate have risen nearly 40 percent since the war in Iran began. High fuel costs have pushed the average U.S. gasoline price past $4 a gallon and diesel to a record high of nearly $6 a gallon.

Bank of America analysts note that such volatility squeezes households and businesses as transportation and production costs climb. Volatile energy prices remain a major factor in monthly inflation reports, with the next U.S. inflation data due Friday. Since the U.S. and Israel attacked Iran in late February, oil exports from the Persian Gulf have been greatly curtailed.

Iran has used force to block most ships from the Strait of Hormuz, a critical waterway carrying a fifth of world oil. The U.S. Navy is assisting navigation to maintain flow. However, Houthi attacks on Saudi Red Sea facilities have disrupted operations, forcing reliance on alternative routes.

With lower-than-expected supply and geopolitical uncertainty persisting, analysts warn prices could reach $150 a barrel if energy infrastructure suffers major damage, though a cease-fire could trigger a swift reversal.