NYMEX crude spikes as Iran reportedly attacks US bases in Iraq

NYMEX crude surged $2/b Tuesday after Iran reportedly launched strikes on US military bases in Iraq.

Prompt NYMEX WTI was up $1.97/b at $64.67/b just before 7 pm ET Tuesday.

Iranian state TV said Tehran had started an attack on US facilities in Iraq in retaliation for a US drone strike in Baghdad that killed General Qassem Soleimani last week.

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White House spokeswoman Stephanie Grisham said: "We are aware of the reports of attacks on US facilities in Iraq. The President has been briefed and is monitoring the situation closely and consulting with his national security team."

Analysts see major risks to Iraq's crude supply if the conflict escalates. Iraq pumped 4.68 million b/d in November -- close to 5% of global crude output -- according to the latest Platts survey of OPEC production.

US officials have also warned of potential Iranian attacks on Saudi oil facilities. Saudi Arabia's critical Abqaiq crude processing facility has already been hit once, on September 14 in an attack Saudi authorities have blamed on Iran, causing half of the kingdom's production capacity to go offline temporarily, though it quickly recovered.

Saudi Arabia is the third-largest global crude producer, pumping 9.90 million b/d in November, according to the Platts OPEC survey, or about one out of every 10 barrels in the world.

Should Iran be targeted by the US, its 2.15 million b/d of production could also be at risk.