Oil prices jump after Iran attacks bases housing US troops that sparked fears of all-out war between Iran and America.
US crude was last up more than 1.2% to over $63 a barrel, coming down slightly from a 4% spike earlier. Brent crude, a global oil benchmark, was last up 1.6% to about $69 a barrel.
The attacks were Iran’s response to the US killing top Iranian General Qasem Soleimani in Baghdad. Iran has called that attack an “act of war” and vowed a response.
President Donald Trump, who has previously visited one of the airbases targeted, has been briefed on the missile attacks. The Pentagon said it is “working on initial battle damage assessments” and will “take all necessary measures to protect and defend” US personnel and allies in the region.
The United States blamed Iran for those attacks, but prices pulled back quickly after Saudi officials said the kingdom would rely on reserves to keep exports stable. Iran denied that it was responsible. It took Saudi Arabia just 11 days to restore production, according to the International Energy Agency.
A spate of attacks last year on oil tankers near the Iranian coast also demonstrates the potential for market disruption. Two oil tankers were attacked in June near the Strait of Hormuz, a strategic choke point through which roughly 30% of the world’s sea-borne crude oil passes.
