WTI price jumps to 8.5-month high on Iranian retaliation
- WTI has hit the highest level since the end of April.
- Iran has reportedly attacked US military bases in Iraq.
- The escalating tensions are boding well for oil.
West Texas Intermediate oil jumped from $62.74 to $65.44 in the 60 minutes to 00:00 GMT and hit a fresh 8.5-month high of $65.55 soon before press time on the back of escalating US-Iran tensions.
The news hit the wires about an hour ago that Iran has launched a missile attack on multiple US military facilities in Iraq. The attack has been confirmed by a senior US official, according to Nick Schifrin, foreign affairs and defense correspondent at PBS Newshour.
With Iran's retaliation to last Friday's US killing of its high ranking military official, the situation seems to have well and truly escalated to a point of no return.
The US may respond after assessing the extent of the damage caused by Iran's aggression. "We will take all necessary measures to protect and defend U.S. personnel, partners, and allies in the region," Pentagon has reportedly said.
As a result, oil prices will likely remain better bid during the day ahead and could challenge resistance at $66.58 (April 23 high).
At press time, a barrel of WTI is changing hands at $65.55 per barrel.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
