Oil Jumps by Most This Year as Trump Warns Iran on Drone Attack - Bloomberg

Oil Jumps by Most This Year as Trump Warns Iran on Drone Attack - Bloomberg:

Oil jumped the most this year after Iran shot down a U.S. drone and Donald Trump warned the Persian Gulf nation it made “a very big mistake,” stoking tensions in the epicenter of global crude production.

Futures climbed as much as 6.1% in New York, after the drone downing, which came a week after two oil tankers were attacked in the region. Crude was also boosted by a rally for equities after the U.S. Federal Reserve signaled it’s ready to lower interest rates for the first time since 2008.

After slipping into a bear market earlier this month, U.S. oil futures have surged almost 10% over the last week, as America and Saudi Arabia blamed Iran for a series of attacks while the Trump administration tightens sanctions on Iranian crude. Word that Trump and Chinese President Xi Jinping are set to resume trade talks at the G-20 summit in Japan have also improved sentiments about global growth.