The price of crude oil skyrocketed this week after a top Iranian military leader was ambushed and killed in a drone airstrike ordered by the President in retaliation for the failed invasion of the American Embassy in Baghdad by Iranian-backed rebels. Global oil experts see this military escalation as a real threat to worldwide oil supplies and subsequent economic health. The standard price of crude oil climbed by nearly three dollars (US) a barrel to a whopping sixty-eight-dollars-and-ninety-six-cents, which is the biggest jump seen in the four months. West Texas oil climbed to nearly sixty-four dollars a barrel, which is an 8-month high. So while oil stock is enjoying a sudden spring, Wall Street itself is getting nervous and starting to pull in its horns as the Dow Jones Average bottomed out by losing over three-hundred points overnight.
And as always, in times of economic turmoil and looming military confrontations, gold has remained a safe haven for investors, going up by about two dollars in the past 48 hours.
Making the international business environment even more muddled is the fact that Iran appears to be gearing up for a major military operation, with reports of large munitions orders being placed with China and North Korea. Under current sanctions, the Western Powers are obligated to prevent delivery of these purchases — which means further international sanctions and depressed consumer spending.