Oil prices climb on conflict in Iraq

Oil prices climbed this morning as tensions brewed in a major oil city of Iraq.

Brent crude futures rose 1.08 per cent to $57.79 a barrel while US benchmark West Texas Intermediate (WTI) prices lifted 0.82 per cent to $51.87 a barrel.

The Iraqi army moved towards the oil-rich city of Kirkuk, which is held by Kurdish forces.

Last month, a referendum in the Kurdistan region showed an overwhelming majority favoured independence.

Iraq is the second biggest oil producer in the Organisation of the Petroleum Exporting Countries (Opec), and traders were worried the Kurdish pipeline would be cut off.

Fears of renewed US sanctions against Iran also bumped prices higher.

On Friday, President Donald Trump refused to re-certify the 2015 Iran nuclear deal. Congress now has 60 days to decide whether to impose economic sanctions on Tehran that were lifted under the pact.

Around a million barrels per day of crude oil were cut off from global markets under the last round of sanctions.

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