Oil Prices Rise About 5% Following Iran Attack on American Forces in Iraq ---West Texas Rises about $ 65

1 January 2020

(Reuters) - Oil surged sharply, increasing US crude by about three dollars, on Wednesday after the United States said its forces in Iraq have been attacked by Iranian ballistic missiles, raising the possibility of a regional conflict that could disrupt oil supplies.

By 00:29 GMT, West Texas Intermediate crude futures were nearly $ 3 higher, equalling roughly 5% to $ 65.50 a barrel. Brent crude has not seen trading after falling about 1% on Tuesday.

“We are working on preliminary assessments of the damage caused," US Defense Department spokesman Jonathan Hoffman said in a statement, adding that the attack targeted Ain al-Assad Air Base and another base in Arbil.

The Iranian Mehr News Agency said that the Iranian Revolutionary Guards targeted the above said base. Tehran has vowed to avenge the assassination of the Iranian military commander Qassem Soleimani in a US air strike on 3 January.

According to Al-Mayadeen TV Channel, sirens were heard and US helicopters were seen flying over Ain al-Assad Base in Anbar Province, Iraq, in the early hours of Wednesday morning.