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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Baramati plane crash: Rohit Pawar alleges attempts to shield VSR Ventures
Mumbai (PTI): NCP (SP) MLA Rohit Pawar on Wednesday alleged that someone was trying to save VSR Ventures in connection with the plane crash that killed Maharashtra deputy chief minister Ajit Pawar, and claimed that the AAIB preliminary probe vindicated the doubts earlier raised by him.
He also accused VSR company of indulging in several grave lapses in the past.
The Learjet 45 aircraft, operated by VSR Ventures, crashed near the Baramati air strip in Pune district on January 28, killing Pawar and four others.
In its 22-page preliminary report on the VSR Venture's Learjet plane crash, the Aircraft Accident Investigation Bureau (AAIB) said the visibility at the time of the crash was below the required level. It also flagged about fading marks on the runway and presence of loose gravels on the runway surface.
Pawar said, "I am not against VSR or the Directorate General of Civil Aviation (DGCA). Ajitdada was travelling in a VSR aircraft. Unless we go into the depth of every aspect, we will not know the truth. But someone is trying to save this company. The doubts we had raised have been proven correct in the inquiry report."
He also claimed that the AAIB report contained discrepancies, including mentioning Baramati as a district, and questioned how seriously the probe had been conducted.
Pawar, who has been regularly holding press conferences to raise issues concerning the Baramati plane crash, also contested the report's conclusion that the aircraft hit trees before crashing.
"The report says the aircraft struck trees and then fell. But there are no trees at that spot. There is only a small bush which the aircraft did not even touch. What is stated in the report about hitting trees is incorrect," he said.
Pawar further alleged that VSR Ventures had displayed irresponsibility on multiple occasions, citing an incident involving the then chief minister Eknath Shinde's Davos visit on January 20, 2023.
He claimed that the aircraft carrying Shinde had entered Iranian and Iraqi airspace without overflight permission, following which fighter jets from the two countries allegedly warned of action, forcing a change in route from Bahrain to Zurich.
"There have been several such grave lapses by VSR," he said.
Pawar demanded to know from where VSR Ventures derived its "audacity", and sought details about its investors and officials, though he added that he was not personally concerned with who they were.
Drawing a comparison, he said the Central Bureau of Investigation (CBI) had taken over the probe into actor Sushant Singh Rajput's death within two days, whereas a month had passed since the Baramati crash without a similar action.
He claimed that VSR Ventures had two directors and three shareholders, and that there were eight common names across two related companies.
He further alleged that the owner of VSR was related to the Union Civil Aviation Minister and questioned why the company, though registered in Delhi, had made high-value investments in Jubilee Hills (upscale area in Hyderabad) at rates allegedly Rs 17 crore above the market price.
The MLA representing the Karjat-Jamkhed assembly constituency in Ahilyanagar district also raised concerns about the legal and institutional framework of the AAIB under the 2017 rules, claiming it was neither a statutory nor an autonomous body and remained answerable to the secretary and the minister, besides being attached to the DGCA.
"There is no independent investigative agency," he alleged.
