Oil prices spike after US assassinates Iran military leader
Oil prices spiked to their highest level in four months on Friday after the US assassinated Iranian military commander General Qasem Soleimani.
The man considered to be Iran's defacto deputy leader was killed at Baghdad airport alongside local Iran-backed militias in a strike ordered by US President Donald Trump.
Brent crude rose 3% to £68.30 a barrel, while West Texas Intermediate was up 2.88% to $62.9.
Iran's Supreme Leader Ayatollah Ali Khamenei said "severe revenge awaits the criminals" behind the attack. Suleimani ran Iranian military operations in Iraq and Syria. He was killed while being driven from Baghdad airport by local allies.
“General Suleimani was actively developing plans to attack American diplomats and service members in Iraq and throughout the region,” the US Pentagon said in a statement said.
“This strike was aimed at deterring future Iranian attack plans. The United States will continue to take all necessary action to protect our people and our interests wherever they are around the world.”
XTB analyst David Cheetham said oil prices rose to levels not seen since shortly after the attacks on Saudi production facilities last September.
"Iran has vowed to retaliate and the markets will be on tenterhooks going forward, with the prospect of a significant escalation rising rapidly following these events," he said.
"When the markets close this evening, there won’t be many wanting to go home with short positions in crude oil given the chance of another inflammatory event over the weekend, with memories of the 20% gap higher after the Saturday attacks on Saudi Arabia just a few months ago still fairly fresh in the mind."