Oil prices continued to rise on Monday after US President Donald Trump threatened to impose sanctions on Iraq if the country expels American troops.
Brent crude, which is an international benchmark for buyers and sellers of oil, rose 2.41% to $70.25 a barrel.
West Texas Intermediate added 2% to $64.34 a barrel.
“The risk of further escalation has clearly gone up – given the direct attack on Iran, Iran’s threat of retaliation and Trump’s desire to look tough – posing the threat of higher oil prices,” says Shane Oliver, chief economist at AMP Capital.
“Historically though oil prices need to double to pose a severe threat to global growth and we are long way from that.”