Oil Soars as U.S. Killing of Iran General Stirs Fear of Conflict

Iran’s supreme leader Khamenei vows ‘severe retaliation’
U.S. to deploy thousands more troops to Middle East, CNN says

WATCH: The loss of Iraqi supplies is unlikely despite the flare up in tensions, according to Amrita Sen, chief oil analyst at Energy Aspects.Source: Bloomberg

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By Sheela Tobben and Grant Smith

January 2, 2020 at 11:53 PM UTC

Updated on

January 3, 2020 at 8:53 PM UTC

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Oil surged toward a 3 1/2-month high as attention turned to Iran’s threatened retaliation for the U.S. airstrike that killed the Islamic Republic’s top general.

Brent futures rose 3.5% on Friday, the highest since the attacks on Saudi Arabia’s oil facilities in September. The airstrike near Baghdad airport killed Qassem Soleimani, the Iranian general who led the Revolutionary Guards’ Quds force. The U.S. intends to send “thousands of additional” troops to the Middle East amid rising regional tensions, CNN reported, citing an unidentified U.S. defense official.