Crude Oil prices reportedly shot up after a United States of America airstrike in Iraq killed Iranian general, Qasem Soleimani.
The development was revealed by Argus Media who posted on Twitter on Friday saying:
Crude # jumped sharply after a US air strike in Iraq killed Qasem Soleimani, the head of the IRGC Quds Force, raising regional tension. Front-month March Brent futures on Ice rose 2.9pc at $68.19/bl at 7am GMT.
As indicated by ZERA recently, the development is likely to cause a shock on the world market similar to the October 1973 oil crisis which began when the members of the Organization of Arab Petroleum Exporting Countries proclaimed an oil embargo. The embargo was targeted at nations perceived as supporting Israel during the Yom Kippur War.
Tensions between Iran and the USA are growing particularly after the USA pulled out of a 2015 nuclear deal with Iran, China, and Russia which would see America lifting sanctions from Iran whilst Iran shun its nuclear programme.
The USA restored and enhanced sanctions on Iran who is now threatening to continue with the nuclear programme and the murder of the Iranian general has further worsened the situation.
More: Argus Media