Oil prices have skyrocketed following the killing of Iran General, Qasem Soleimani by the US drone strike at Baghdad airport.
Analysts have now warned that the US defensive attack as argued by the Pentagon.
"General Suleimani was actively developing plans to attack American diplomats and service members in Iraq and throughout the region,” and that, “This strike was aimed at deterring future Iranian attack plans,” read the statement as quoted by the Guardian.
The New York Times noted that the move could increase tension in the region and affect global oil production.
In addition, the BBC reported that the price of Brent crude oil shot by almost $3 up to $69.16 a barrel from the previous price of $65.25, the highest since September last year.
Thus, the international price of the Brent crude oil is currently trading at $69 a barrel following the surge.
The sudden increase in the oil price pushed the oil stocks on the London stocks exchange higher; with BP recording 1.5% high and Royal Dutch Shell at 1.4% increase in price as reported by the BBC.
The latest US onslaught against Iran has awakened fear of likely risk to the energy supply in the region.
With world biggest oil producers being in the region, not to mention the global oil supplies passage through the strait of Hormuz; could affect global oil prices if the military attack on Iran won't be abated.