Oil prices jumped by as much as 4% on Wednesday following an Iranian missile attack on US and coalition military bases in Iraq, raising fears of a full-scale conflict between Iran and the United States. Brent crude briefly surpassed $70 per barrel before retreating, while West Texas Intermediate also saw gains.
The attack, launched by Iran's Islamic Revolutionary Guard Corps in retaliation for the US assassination of General Qassem Suleimani, targeted air bases at Al Assad and Erbil. Markets had already been on edge since the drone strike that killed Suleimani near Baghdad airport on Friday.
Asian stock markets were also affected, with Australia's ASX falling around 1% before recovering after Iranian officials downplayed the likelihood of further strikes. However, shares in Qantas dropped nearly 3.4%, partly due to its code-share agreement with Emirates, based in Dubai near the Persian Gulf.
Investors sought safe havens, driving gold prices up 3% on Wednesday. The US Federal Aviation Authority banned American airlines from flying over the region, but Australian carriers remain unaffected, with each airline making its own decisions, according to Civil Aviation Safety Authority spokesman Peter Gibson.
