Oil Prices Jump After Iran Military Leader Killed In US Airstrike

Hamilton Nwosa
Writer
new-diplomat default image
new-diplomat default image

Ad

Saving Democracy: The Urgency of Electoral Reforms

By Dakuku Peterside Voter turnout is democracy’s vital sign, and ours has been fading. Since 2007, participation has fallen from 57% to 26.7% in 2023—our lowest since the return to civilian rule. Out of 93.47 million registered voters, only 24.9 million cast their votes. These are not just statistics; they are signals from the body…

Certificate Scandal: Accused Minister confesses + Details of court records

The Minister of Science and Technology, Uche Nnaji, has admitted that the University of Nigeria, Nsukka (UNN), never issued him a degree certificate. This admission validates the findings of a painstaking two-year investigation by PREMIUM TIMES, which revealed that he forged the credentials he submitted to President Bola Tinubu and the Nigerian Senate during his…

Billionaire vs the union, By Sam Omatseye

There is nothing that the story of oil will not do in this country. It is black but a devious beauty. It is a tale of a beautiful woman or what poets call a femme fatale. Nobel Laureate Garcia Marquez in his immortal novel, One Hundred Years of Solitude, wafts the tale of Remedios the…

Ad

Futures for Brent crude, a global benchmark, jumped 3.4% to $68.45 per barrel on Friday. US oil futures gained 3.2%, reaching $63.12 per barrel. Both are on track for their biggest daily gains in about a month.
Qasem Soleimani, commander of the Quds Force of Iran’s Islamic Revolutionary Guards Corps, was killed in the strike at Baghdad International Airport.
The Pentagon said that Soleimani was “actively developing plans to attack American diplomats and service members” and that the strike was aimed at “deterring future Iranian attack plans.”
How these portable devices in Kenya are helping to improve cancer detection rates
The killing of the powerful Iranian general risks further escalating tensions in the Middle East, which is home to major oil producing countries and key energy supply routes.
Iranian President Hassan Rouhani said in a statement that his country would take revenge for the killing of Soleimani.
“An indirect response is the most apparent course of action, and oil installations and tankers were my first thoughts,” said Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, in a research note.
But Halley added that it’s hard to tell whether Friday’s surge will be sustained.
Oil prices spiked more than 14% in September after coordinated attacks on crucial Saudi Arabian energy production facilities disrupted 5% of the daily global oil supply.
The United States blamed Iran for those attacks, but prices pulled back quickly after Saudi officials said the kingdom would rely on reserves to keep exports stable. Iran denied that it was responsible. It took Saudi Arabia just 11 days to restore production, according to the International Energy Agency.
A spate of attacks last year on oil tankers near the Iranian coast also demonstrates the potential for market disruption.
Two oil tankers were attacked in June near the Strait of Hormuz, a strategic choke point through which roughly 30% of the world’s sea-borne crude oil passes.
“Given the scope for tension to persist in the Strait of Hormuz, a protracted period of higher oil prices has to be a risk,” said Kit Juckes, a strategist at Societe Generale.

Other markets react

There were other signs of investor unease on Friday.
The price of gold, which traders tend to buy in times of uncertainty, increased by nearly 1% to $1,544 per ounce. The Japanese yen, another safe haven, strengthened 0.6% against the US dollar.
Elsewhere on Friday, major Asian stock indexes reversed earlier gains and traded lower following the news.
Hong Kong’s Hang Seng Index (HSI) shed 0.3%, while South Korea’s Kospi (KOSPI) was little changed. China’s Shanghai Composite (SHCOMP) was down 0.1%, after seesawing between gains and losses.
Japanese markets were still closed for the New Year’s holidays and will resume trading on Monday.
Stocks in Europe opened lower. The FTSE 100 was down 0.5% in London and Frankfurt’s DAX dropped 1.2%.

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp