Oil extended its dramatic surge, surpassing $70 a barrel in London for the first time since September, as Middle East tensions flared after the US assassinated one of Iran’s most powerful generals.
Futures jumped by another 1.4% on Monday as the US State Department warned of a “heightened risk” of missile attacks near military bases and energy facilities in Saudi Arabia.
President Donald Trump reiterated threats of retaliation should Iran “do anything” and vowed heavy sanctions against Iraq if American troops are forced to leave OPEC’s second-biggest producer.
The clash is fanning fears that a wider conflict could disrupt supply from the region, which provides almost a third of the world’s oil. Prices haven’t hit these levels since an attack on Saudi Arabia’s production facilities in September – which the US blamed on Iran – briefly halted about 5% of global output.
“Crude has some more risk pricing to do,” said
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