Oil prices shed gains as alarm over Iran rocket strike fades – for now

Oil prices were up on Wednesday but well below peaks hit in frenzied early trading after a rocket attack by Iran on American forces in Iraq raised the spectre of a spiralling Middle East conflict and disruption to crude flows.

Prices gave up most of their early gains as analysts said market tension could ease as long as oil production facilities remain unaffected by attacks. Tweets by US President Donald Trump and Iran’s foreign minister also appeared to signal a period of calm – for now.