03.01.202009:14:00UTC+00Oil Prices Soar On Middle East Tensions

Oil prices jumped nearly 4 percent on Friday on fears of a supply disruption following the U.S. killing of a leading Iranian commander.

Benchmark Brent crude for March delivery jumped as much as 3.65 percent to $68.65 a barrel, after hitting an intra-day high of $69.16 a barrel, the highest since September 17.

U.S. West Texas Intermediate (WTI) crude futures were up 3.7 percent at $63.45 a barrel, after having earlier touched $63.84 a barrel, the highest since May 1.

A U.S. airstrike killed top Iranian military personnel, Qassem Soleimani, raising concerns that escalating tensions may disrupt oil supplies.

The U.S. Department of Defense said in a statement that it had killed the head of the Islamic Revolutionary Guard's elite Quds Forces in an airstrike.

The Department of Defense said Soleimani was behind the recent attacks on the U.S. embassy in Baghdad and said the "strike was aimed at deterring future Iranian attack plans."

Iranian leader Ayatollah Ali Khamenei said there would be "revenge" for Soleimani's death.

Oil prices were also lifted by China's policy easing move and hopes of an imminent trade deal between the United States and China.

China's central bank on Wednesday trimmed the amount of cash that lenders must hold in reserve, releasing around 800 billion yuan ($115 billion) in funds to shore up the slowing Chinese economy.

The announcement came shortly after data showed China's production continued to grow at a solid pace and business confidence shot up.