Oil prices surge more than 4% after US strike kills Iranian general
Hong Kong, Jan 3: Oil prices soared more than four per cent Friday following news that the US had killed a top Iranian general, fanning fresh fears of a conflict in the crude-rich region.
The head of Iran's Quds Force, Qasem Soleimani, was hit in an attack on Baghdad's international airport early Friday, according to Hased, a powerful Iraqi paramilitary force linked to Tehran.
Later, Donald Trump tweeted a picture of the American flag, and the Pentagon said he had ordered Soleimani's killing.
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.
"This is more than just bloodying Iran's nose," said AxiTrader's Stephen Innes.
"This is an aggressive show of force and an outright provocation that could trigger another Middle East war."
The killing of Soleimani is a dramatic escalation of tensions between the United States and Iran and comes after a pro-Iran mob this week laid siege to the US embassy in Iraq following deadly American air strikes on the hardline Hashed faction.
The attack on the embassy highlighted new strains in the US-Iraqi relationship, which officials from both countries have described to AFP as the "coldest" in years.
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, with Trump blaming Iran for the attack and previous other blasts on tankers in the Gulf last year.
The crisis also comes as tensions between the US and North Korea worsen, with Kim Jong Un declaring a self-imposed moratorium on nuclear and intercontinental ballistic missile tests had ended, with US talks going nowhere.
"We are waking up to a less safe world than it was only hours ago, especially if we combine this with simmering tension in the Korean peninsula," Innes added.
The drama 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 with Mumbai.
But Seoul, Sydney, Wellington, and Manila were in positive territory.
Markets had all been well up before news of the strike, thanks to ongoing optimism fuelled by the China-US trade agreement, looser central bank monetary policies and easing Brexit worries.
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Cold grips Delhi, minimum temperature settles around 3 degrees
New Delhi (PTI): Delhi woke up to intense cold conditions on Monday as the minimum temperature dipped to around 3 degrees Celsius at several weather stations across the city, making it the coldest January day since 2023.
On January 16, 2023, the minimum temperature had plunged to 1.4 degrees Celsius, according to the India Meteorological Department (IMD).
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Station-wise data recorded at 8.30 am showed the Safdarjung Observatory, Delhi's principal weather station, registered a minimum temperature of 3.2 degrees Celsius, which was 4.2 notches below normal.
Palam recorded a minimum temperature of 3.3 degrees Celsius, while Lodhi Road logged 3 degrees Celsius.
Ridge recorded a minimum of 4.2 degrees Celsius and Ayanagar reported 3.2 degrees Celsius, the IMD data showed.
The IMD said the maximum temperature in the national capital is expected to touch 19 degrees Celsius.
It said cold wave conditions are likely to persist over the national capital over the next two days.
Delhi's air quality, meanwhile, remained poor.
According to data from the Central Pollution Control Board (CPCB), the city's overall Air Quality Index (AQI) stood at 298 in the 'poor' category.
Around 20 monitoring stations recorded 'very poor' air quality, while the remaining stations were in the 'poor' category. Nehru Nagar recorded the worst air quality with an AQI of 344.
According to the CPCB classification, an AQI between 0 and 50 is considered 'good', 51 to 100 'satisfactory', 101 to 200 'moderate', 201 to 300 'poor', 301 to 400 'very poor', and 401 to 500 'severe'.
