Business World

Oil prices spike after killing of Iranian military leader in US airstrike

The prices of the benchmark Brent crude in the international markets surged on Friday after a military strike by the US killed a top Iranian general in Baghdad.

Futures for Brent crude, a global benchmark, jumped 2.9% to $68.16 per barrel during Asian trading hours on Friday. US oil futures gained 2.8%, reaching $62.86 per barrel.

The Pentagon confirmed in a statement that the US military killed Qasem Soleimani, the commander of Iran’s Islamic Revolutionary Guards Corps (IRGC) Quds Force unit, in the attack at Baghdad International Airport. It said the strike was aimed at “deterring future Iranian attack plans.”

The strike also killed the Deputy chief of Iraq’s powerful Hashed al-Shaabi paramilitary force along with Soleimani. Soleimani is among the top three leaders from a military perspective in Iran.

Analysts warned that the incident could escalate tensions in the region and affect global oil output.

The move further escalates the geopolitical tensions between the US and Iran.

Oil prices spiked more than 14% last September in the wake of a devastating attack on the heart of Saudi Arabian oil production, disrupting 5% of the daily global oil supply.