Search ForexCrunch
  • WTI oil jumps to eight-month highs on US-Iran tensions. 
  • Experts think US airstrike on Iran militia has escalated things to a point of no return. 
  • Oil rally is weighing over risk assets and pushing yen higher. 

West Texas Intermediate (WTI) oil is gaining altitude on US-Iran tensions. 

The black gold is currently trading at $63.49 per barrel, representing a 3.91% gain on the day. Prices hit a high of $63.81 soon before press time. That was the highest level since May 1. 

Major escalation

US airstrike on Baghdad airport on Friday killed Qassem Soleimani, Iran’s most admired military figure and Abu Mahdi al-Muhandis, the deputy commander of Iran-backed militias. The news put a bid under WTI, lifting prices higher from $61.12 to $63.81.

“This could be one of the most seismic events in the middle east in recent years,” tweeted Josh Lederman, national political reporter at NBC News. 

Meanwhile, Bryan Dean Wright, opinion writer, and former CIA officer, thinks the situation has escalated to a point where no one can predict what happens next. 

Put simply, the US move has introduced significant geopolitical uncertainty into the market. 

Oil, therefore, could continue to climb during the day ahead, pushing risk assets lower across the board. The futures on the S&P 500 are already flashing red with a 0.5% drop and the anti-risk Japanese yen has jumped to two-month highs against the greenback. 

WTI Technical levels