Oil prices rise after Iran launches missile attack on US air base

New Delhi, Jan 08: In the wake of a missile attack by Iran on a US airbase in Iraq, oil prices have soared.

The oil market responded immediately with the WTI jumping 4 per cent before falling back slightly reported stated.

Iran said that it launched tens of surface to surface missiles at Iraq's Ain Assad airbase that houses US troops. The attack was over the killing of Iran's top general Qassem Soleimani.

Iran's Revolutionary Guards has warned the US and its regional allies against retaliating over the missile attack in Iraq.

"We are warning all American allies, who gave their bases to its terrorist army, that any territory that is the starting point of aggressive acts against Iran will be targeted," a statement read. It also warned Israel.

The state TB said that the operation was named Martyr Soleimani. The Guard's aerospace division that controls Iran's missile programme launched the attack.

On January 3, the US took down Soleimani in a drone strike. Ever since the imposition of strict sanctions against Iran, tensions have been high with the US. Sanctions on Iranian oil exports were imposed last year and this had forced major importers like India and China to cut purchases. The sanctions were imposed after several oil tankers were attacked in the Persian Gulf. The US had blamed Iran for the attacks.