Oil prices soared more than four per cent on Friday following news that the US had killed head of Iran’s Quds Force Qasem Soleimani, fanning fresh fears of a conflict in the crude-rich region. Brent surged 4.4 per cent to USD 69.16 and WTI jumped 4.3 per cent to USD 63.84 as investors grow increasingly worried about the effects of a possible flare-up in the tinderbox Middle East on supplies of the commodity. Both contracts later pared the gains but remained well up. Oil prices saw a record surge in September after attacks on two Saudi Arabian facilities briefly slashed output in the world’s top exporter by half.
The killing of the top Iranian general sent investors rushing for the hills and safe-haven units rallied with the yen up 0.7 per cent against the dollar and gold climbing more than one percent.
High-risk currencies retreated against the greenback, with South Korea’s won down 0.6 per cent, Australia’s dollar down 0.4 per cent and the South African rand down more than one per cent. Equities were mixed, having been enjoying the second day of the year rallying on trade optimism. Hong Kong fell 0.2 per cent by the break, while Shanghai shed 0.3 per cent. Singapore retreated 0.5 per cent and Taipei dropped. But Seoul, Sydney, Wellington, and Manila were in positive territory.
