Oil Prices Jump after Iranian general killed by US.

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Oil prices have risen sharply after the killing of a top Iranian general in Iraq.

Analysts have warned that the action could heighten tensions in the region and affect global oil production.

The price of Brent crude jumped by more than 3% and at one point hit $69.50 per barrel, the highest since September.

Source: research gate

It came after General Qasem Soleimani was killed in a US drone strike at Baghdad airport, which the Pentagon described as a “defensive action”.

The price spike pushed oil stocks on the London stock exchange higher, with BP(British Petroleum) up to 2.7% and Royal Dutch Shell nearly 1.9% higher.

Shares in US oil companies such as Exxon Mobil dropped, however, amid a wider US market fall prompted by weak manufacturing data and concerns about the implications of the Middle East conflict.

The Dow and the Nasdaq closed down about 0.8%, while the S&P 500 dropped by 0.7%. The declines followed record highs a day earlier.

“2020 opened on a very positive note,” said Aneeka Gupta of WisdomTree Investments. “This event has actually stalled the bullish optimism we’ve seen.”

Author: Austine