Oil rises to the highest since October as Israel bombs Iran’s consulate in Damascus

Israel bombed the Iranian consulate in Damascus, killing a general and five others.

It’s rare to see diplomatic buildings targeted in the long-running fight and that could signal escalation or retaliation. Oil was stronger on the day ahead of the news so it’s debateable how much it added but it certainly won’t hurt.

In the bigger picture, oil broke above $80 two weeks ago then retested it last week. The break to new highs today squarely targets $85 in WTI and $90 in brent. OPEC isn’t expected to change quotas after this week’s JMMC and — if anything — may chastise those who are overproducing like Iraq.

This article was written by Adam Button at www.forexlive.com.