Did you miss us? We are back and not a moment too soon as the world seems to be up to its old tricks again in the new year.
A U.S. deadly strike that killed Iran’s top military leader Qassem Soleimani in response to Iranian aggression against American interests in Iraq has brought a threat that had been lurking in the shadows last year to the fore this year. Brent crude is flirting with US$70 per barrel and safe-haven gold has also spiked this morning, while stocks are reeling amid uncertainty over where the next shot will come from.
Last summer, a missile landed 100 meters from an ExxonMobil housing facility in Iraq, while Exxon also evacuated around 80 foreign staff from the West Qurna 1 oilfield in another incident. Dozens of U.S. citizens working for foreign oil companies in the southern Iraqi oil city of Basra were preparing to leave the country on Friday, Reuters reported.
The Iranian actions will, however, stop short of what would be considered war, Rome said in a note to clients, noting that a limited conflict has a 70 per cent probability and a major conflict a 30 per cent probability.”