Oil prices went up as much as 6%, in part because people are worried the US will go to war with Iran.
Iran shot down a U.S. military drone on Thursday. Iran says the drone was in their airspace, the US says it was in international airspace.
After the drone was shot out of the sky, Trump initially came out with a threatening tweet, saying “Iran made a very big mistake!”
After his initial message to Iran, Trump made a follow-up statement that was more toned down. Trump said it was “hard to believe it was intentional” and whoever carried out the attack was “loose and stupid.”
20% of the world’s oil output comes from the Middle East. The falling value of the dollar is also a reason for the increase in price. Despite the rise in price, the impact of the US threatening Iran has been rather muted in terms of what most analysts would expect.
Intermediate crude settled at $56.55, up $2.79, or 5.19% a barrel, down from a 6% surge earlier in the day. Brent crude was up $2.32 or 3.7% settling at $64.16 a barrel.