Oil Prices Surge By 4.5 Per Cent After Iran Launches Missile Attack On US Bases

Oil prices on Wednesday early morning surged by as much as 4.5 per cent per barrel on Asian trade after Iran fired a barrage of ballistic missiles against two airbases in Iraq used by the US and coalition forces.

According to a report of CNBC, US West Texas Intermediate crude futures spiked 4.5 per cent, or $2.85, to a session high of $65.65, before pulling back to $64.11. Meanwhile, International benchmark Brent crude surged more than 4 per cent to a session high of $71.75 per barrel, before pulling back to $69.86.

On the other hand, Japan's benchmark Nikkei 225 stock index fell by more than 2 per cent, and Hang Seng in Hong Kong was down 1.26 per cent in early trade.

Iran on Wednesday early morning fired 12 ballistic missiles into an Iraqi airbase in the country's west where the US and coalition forces are based. The attack on the Ain al-Asad airbase came after pro-Tehran factions in Iraq had vowed to join forces to "respond" to an American drone strike that killed Iranian general Qasem Soleimani and Iraqi top commander Abu Mahdi al-Muhandis in Baghdad last week.

The missile attack comes hours after Iran's Revolutionary Guard leader threatened to "set ablaze" places supported by the United States. Hossein Salami made the pledge before a crowd of thousands gathered in a central square in Kerman, the hometown of the slain Gen Qassem Soleimani.

“At approximately 1730 EST on Jan. 7, Iran launched at least a dozen ballistic missiles against U.S. military & coalition forces in Iraq,” US Department of Defence tweeted.

“It is clear that these missiles were launched from Iran & targeted at least two Iraqi military bases hosting U.S. military & coalition personnel at Al-Assad & Irbil. We are working on initial battle damage assessments,” it added.

Also Read: Iran Launches First Attack Against US, 12 Ballistic Missiles Hit Iraqi Airbase Housing Foreign Troops

Qasem Soleimani, the popular head of the Revolutionary Guards' foreign operations arm, was killed in a US drone strike outside Baghdad airport on Friday, ratcheting up tensions between the arch-foes.

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