Crude oil prices approach $70 after US attack on Iranian general

Crude oil prices spiked by 4% on Friday upon news that a top Iranian general was killed in an airstrike by the United States military. 

Brent crude futures, the international benchmark for crude oil, stood at $69.01 per barrel, an increase of 4.17%.

US West Texas Intermediate (WTI) also stood at $63.34 per barrel, a 4% increase.

The Pentagon said the attack was carried out on the order of President Donald Trump to deter “future Iranian attack plans”.

It added that Soleimani was killed because he “was actively developing plans to attack American diplomats and service members in Iraq and throughout the region”.

The airstrike comes days after an Iran-backed militia and its supporters breached the US embassy in Baghdad.

Iraqi Popular Mobilisation Forces (PMF) confirmed that Abu Mahdi al-Muhandis, deputy head of the force, was also among those “martyred by an American strike”.

In September, oil prices increased by 14% after coordinated attacks were carried out on Saudi Arabia’s oil facilities which cut off 5% of global oil supplies.

Working in Nigeria’s good

Although world leaders are holding their breath awaiting Iran’s next action, the situation is working in favour of oil producing nations like Nigeria.

Already, Brent crude price is $9 above Nigeria’s crude oil budget benchmark.

A reprisal attack by Iran could send oil prices as high as $100 as global crude supply could be threatened.