Oil prices surged more than 4% in early trading on Tuesday night after Pentagon officials said that Iran launched more than a dozen ballistic missiles against multiple bases in Iraq housing U.S. troops.

U.S. West Texas Intermediate crude futures surged 4.5%, or $2.83, to $65.53, its highest level since April. International benchmark Brent rose 4.2%, or $2.86, to $71.24 per barrel.
“At approximately 5:30 p.m. (EST) on January 7, Iran launched more than a dozen ballistic missiles against U.S. military and coalition forces in Iraq. It is clear that these missiles were launched from Iran and targeted at least two Iraqi military bases hosting U.S. military and coalition personnel at Al-Assad and Irbil. We are working on initial battle damage assessments,” Assistant to the Secretary of Defense for Public Affairs Jonathan Hoffman said in a statement. “We are working on initial battle damage assessments.”
U.S. stock futures plunged on Tuesday night, with the Dow Jones Industrial Average futures shedding more than 400 points and indicated a loss of 432 points at Wednesday’s open. S&P 500 and Nasdaq 100 futures pointed to losses of at least 1.5%.
Following reports of the attacks, White House press Secretary Stephanie Grisham said President Donald Trump “has been briefed and is monitoring the situation closely and consulting with his national security team.”
“The idea that Iran might wait or even not retaliate has been disabused,” Again Capital’s John Kilduff said Tuesday. “Oil now must wait out any reports of American casualties, which should then invite a fulsome U.S. response.” 
He added that WTI could “easily be above $70” by morning.
Tuesday’s attack comes as tensions between the United States and Iran have been building, following Thursday’s airstrike that killed Iran’s top commander Qasem Soleimani.
On Friday oil prices surged more than 3% as the Street digested possible forms of Iranian retaliation, which some said could include targeting oil production facilities in Iraq or Saudi Arabia. But by Monday fears appeared to have subsided, and oil settled little changed after initially rising more than 2%. On Tuesday, prices slid about 1%.