This archive report was first published on 3 January 2020.
Oil prices surged on January 3, 2020, after the US killed Iranian General Qasem Soleimani in a strike on Baghdad's international airport, fueling concerns of a conflict in the Middle East.
The attack, which was confirmed by the Pentagon, marked a significant escalation of tensions between the US and Iran, and came after a pro-Iran mob laid siege to the US embassy in Iraq following deadly American air strikes on the hardline Hashed faction.
"This is more than just bloodying Iran's nose," said AxiTrader's Stephen Innes. "This is an aggressive show of force and an outright provocation that could trigger another Middle East war."
"This is more than just bloodying Iran's nose," said AxiTrader's Stephen Innes. "This is an aggressive show of force and an outright provocation that could trigger another Middle East war." — AxiTrader's Stephen Innes
As a result, oil prices rose sharply, with Brent surging 4.4 percent to $69.16 and WTI jumping 4.3 percent to $63.84. Investors also turned to safe-haven assets, with the yen up 0.7 percent against the dollar and gold climbing more than one percent.
Equities, which had been enjoying a rally on trade optimism, sank into the red, with Hong Kong falling 0.2 percent and Shanghai shedding 0.1 percent.
