CRUDE oil prices rose for the first time in four months to $71.75 per barrel, after Iran launched ballistic missiles striking two United States, US, military bases in Iraq, indicating a further escalation of tension between both countries.

Brent crude, Nigeria's crude equivalent increased by 4 per cent on Wednesday to $71.75 per barrel, its highest since September, before pulling back to $69.86 while  NYMEX February light sweet crude increased by 2.19 per cent to settle at $64.07 per barrel.

According to a report, Iranian state TV said Tehran had started an attack on US facilities in Iraq in retaliation to a US-led drone strike in Baghdad that killed General Qasem Soleimani.

The US Department of Defence said Iran launched more than a dozen ballistic missiles at bases housing US troops.

However, analysts suggest that the further escalation of crises in the Gulf region could put the oil market prices at risk of lower prices if the war trend is not curtailed.

"Retaliatory action taken by Iran in the face of the on-going US-Iran tensions sets the market's risk aversion interest on fire. With expectations of further friction from here, investors appear to be pricing for an all-out war," a market strategist Pan Jingyi said in an interview with S & P Global Platts.

READ MORE: https://www.icirnigeria.org/oil-price-peaks-in-four-months-as-iran-attacks-us-base-in-iraq/