Wednesday, 8 January 2020 13:19 WIB | COMMODITY |BrentWTIMinyak
Oil prices jumped after Iran attacked two U.S.-Iraqi bases in its first response to the killing of its top general, sparking fears the deepening conflict will disrupt global crude supplies.
Futures in London briefly surged more than 5% to almost $72 a barrel as the Islamic Revolutionary Guard Corps claimed responsibility for the missile strikes, which the Pentagon said were launched from Iran. Prices later pared more than half that advance after Iran™s foreign minister said it had œconcluded proportionate measures in self-defense and U.S. President Donald Trump tweeted that œall is well following the attacks.
While flows from the Middle East continue to be unimpeded for now, the risk of disruption is spooking the oil market. Most crude exports from the Persian Gulf, including shipments from Saudi Arabia, Iran and Iraq, go through the Strait of Hormuz, a narrow waterway that Iran has repeatedly threatened to shut down if there™s a war.
The impact of the strike also spilled over into other assets, with gold surging to the highest level in six years, while U.S. stock futures pared losses after slumping earlier.
Oil has had a dramatic start to the year, triggered by the U.S. airstrike that killed General Qassem Soleimani last week. Iran said Tuesday it was assessing 13 possible ways to inflict a œhistoric nightmare on America after the assassination of the military commander near Baghdad™s international airport.
Brent crude rose as much as $3.48 to $71.75 a barrel before trading 1.3% higher at $69.17 on the ICE Futures Europe exchange as of 1:07 p.m. in Singapore. West Texas Intermediate climbed as much as $2.95, or 4.7%, to $65.65 on the New York Mercantile Exchange, later retreating to $63.47.
Source : Bloomberg