Oil Prices Soars to $70 Per Barrel Amidst US-Iran Conflict

Global oil prices have soared to $70 per barrel after US attack on Iranian General Qasem Soleimani amid growing fears of reprisal attacks.

The attack sent jitters to the global markets spiralling equity indices in Europe, US and Asia to crash while the standard price of Brent crude rose to its peak since September.

Iran declared that it would take revenge on the assassination of Suleimani, who was the commander of the Islamic Revolutionary Guard Corps Quds Force and one of the most powerful leaders in Iran.

During the weekend, when the US warned that Iran might retaliate by aiming at oil facilities in the Middle East, which could drive prices higher and upset global oil supplies.

According to the Guardian, a prolonged oil price surge could raise the risk of a global economic recession and would add about 2p a litre to the price of petrol at the pumps.

A combination of Iraq, Iran and Saudi Arabia pumped more than 16 million barrels of oil a day during the month of December and most of their exports leave the narrow waterway by the Persian Gulf through the Strait of Hormuz, which Iran has repeatedly threatened to shut down if there’s a war.

The Middle-East tension has also sent fears that have triggered a surge in the market price for gold, a commodity that most asset managers consider a safer haven in times of turmoil.

The market price for gold rose to a near seven-year high of $1,575 an ounce as global equity markets fell and analysts expect the price could climb higher if the US dollar weakens relative to other currencies.

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