Oil Prices Are Likely To Soar Up After Iran’s Attack On US Troops In Iraq

Oil Prices Are Likely To Soar Up After Iran’s Attack On US Troops In Iraq

Published: 10-Jan-2020 | Published By: Market Research Store

Oil prices have been found to be skyrocketing after the Pentagon declared that Iran launched approximately a dozen ballistic missiles against base camps in Iraq that refuge US troops. Thus, it is definite that concerns about a tit-for-tat conflict between the US and Iran are likely to hamper the world economy. The US crude was found to have risen to $63 a barrel from last 1.2% but it has dropped down from its earlier 4% spike. The global oil benchmark for Brent crude was last up from 1.6% to $69 a barrel. The attack was carried as part of revenge against the killing of Iranian General Qasem Soleimani in Baghdad. The killing was the reason Iran behind Iran calling for the current state of terrorism or act of war.

It is no surprise that Iran planned for revenge and there could be more attacks that the US may have to face in the near future. President Donald Trump who had visited one of the bases that were targeted was briefed about the attacks. Thus, the Pentagon has announced that it will work on the preliminary battle damage assessments and measures to protect and safeguard its US personnel and allies in the region. Trump has vowed that the US will strike back if Iran continues to retaliate for the US drone strike that killed IRGC Quds Force Head Qasem Soleimani.

At present, all the investors are on the edge of the cliff as any clash between the US and Iran is likely to threaten oil supplies in the Middle East. Crude prices were lowered with the hopes that energy supplies would not have a negative impact due to the ongoing tensions. If the oil prices were to spike then it could be a big blow to the world economy that is already struggling with unstable manufacturing activity. Dow (INDU) futures were found to have slipped down 400 points during the Asian trading hours. Dow has already fallen below 150 points.