Oil prices soar as Iran hits US Iraqi bases with missiles


Australia, China, India storing cheap oil in Strategic reserves

Oil rose sharply, with U.S. crude rising nearly $3, on Wednesday after the U.S. said its forces in Iraq were attacked by Iranian ballistic missiles, raising the prospect of a regional conflagration that could cut oil supplies.

West Texas Intermediate crude futures rose nearly $3, or almost 5%, to $65.50 a barrel at around 0029 GMT. Brent crude was yet to trade after dropping nearly 1% on Tuesday.

Iran has launched an attack on U.S.-led forces in Iraq, the U.S. military said on Tuesday, adding Tehran fired more than a dozen ballistic missiles from Iranian territory against at least two Iraqi military bases hosting U.S.-led coalition personnel.

“We are working on initial battle damage assessments,” Pentagon spokesman Jonathan Hoffman said in statement, adding that the bases targeted were at Al-Asad air base and another in Erbil, Iraq.

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Iranian news agency Mehr said Iran’s Islamic Revolutionary Guard Corps had targeted the base.

Tehran has vowed retaliation for the killing of Iranian military commander Qassem Soleimani by a U.S. air strike on Jan. 3.

Sirens were heard and American helicopters were seen flying over Iraq’s Ain al-Asad air base in Anbar province early on Wednesday, according to al Mayadeen TV.

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