With the recent attack on Iraq bases housing U.S. troops by Iran, oil prices surged more than 4% at their high during the early trading on Tuesday. Iran launched more than a dozen ballistic missiles against several bases in Iraq as a sign of retaliation for the death of their top commander Qasem Soleimani who died during a U.S. airstrike last week.
U.S. West Texas Intermediate crude futures rose 4.5% or $2.85, to a session high of $65.65 a barrel, its highest level since April before it went back down to $64.11. Brent crude also shot more than 4% to a session high of $71.75 per barrel, its highest since September, before it to went down to $69.86.
U.S. stock futures dived on Tuesday, with the Dow Jones Industrial Average futures falling more than 400 points. A loss of more than 300 points from Wednesday's open. S&P 500 and Nasdaq 100 futures also suffered a setback pointing to a loss of at least 1%.
Last Friday oil prices were at 3% high as speculations circulate as to what Iran would do to retaliate. There were fears that Iran might target oil production facilities in Iraq or Saudi Arabia. But by Monday fears seems to have subsided as oil prices changed very little after initially rising more than 2%. On Tuesday prices of oil slid to about 1%.