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Oil prices spiked after U.S. air strikes in Iraq killed a top Iranian commander, heightening geopolitical tensions.

Oil Prices Surge After U.S. Air Strikes In Iraq

1/2/2020

Oil prices spiked after U.S. air strikes in Iraq killed a top Iranian commander, heightening geopolitical tensions.

Iranian Major-General Qassem Soleimani, head of the elite Quds Force and top Iraqi militia commander Abu Mahdi al-Muhandis were killed early on Friday in a U.S. air strike on their convoy at Baghdad airport, the Pentagon said

While equity markets turned lower, oil prices surged on news of Soleimani’s death, with global benchmark Brent crude shooting 3.02% higher to $68.25 per barrel and U.S. West Texas Intermediate crude jumping 2.75% to $62.86 per barrel.

News of the strikes came after U.S. Defense Secretary Mark Esper said on Thursday there were indications Iran or forces it backs may be planning additional attacks after Iranian-backed demonstrators hurled rocks at the U.S. embassy in Baghdad following American strikes on Sunday against bases of the Tehran-backed Kataib Hezbollah group.

Esper warned that the “game has changed” and it was possible the United States might have to take preemptive action to protect American lives.

In currency markets, the dollar weakened as investors snapped up safe-haven Japanese yen but was flat against the Euro. The dollar index, which tracks the dollar against a basket of six major rivals, was down 0.09% at 96.758.

— Reuters

Source Article: PG&J


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