TOKYO: Oil prices jumped to its highest since September 2019 on Wednesday after Iran attacked American forces in Iraq in response to a US strike that killed an Iranian general last week, raising the specter of a spiraling conflict and disrupted oil supplies.
However, prices cooled a fraction after the early heat as analysts said market tension could ease as long as oil production facilities remain unaffected by attacks.
Brent crude futures rose $1.56, or 2.3 per cent, to $69.83 by around 0207 GMT, after earlier rising to $71.75, the highest since mid-September 2019.
West Texas Intermediate crude futures climbed $1.25, or 2 per cent, to $63.95 a barrel. It earlier reached a high of $65.85, the most since late April last year.
Iran’s missile attack on US-led forces in Iraq came early on Wednesday, hours after the funeral of Qassem Soleimani, the commander of the country’s elite Quds Force killed in a US drone stroke on January 3.