Price of oil spikes after US drone shot down

The price of oil spiked on Thursday after Iranian military forces shot down a US drone.

Iran’s Islamic Revolution Guards Corps (IRGC) said it had shot down the drone near Iranian airspace, the BBC reported. US officials have confirmed that it was a US drone, according to the same report.

Iranian news agency Fars said that the vehicle shot down was a “US-made Global Hawk spy drone” but an unnamed US official told Reuters it was “a U.S. Navy MQ-4C Triton.” IRGC said that the drone was in Iranian air space, while the US official told Reuters it was in international airspace.

Crude oil (CL=F) was trading up by 2.8% to $55.29 shortly after the incident was reported early on Thursday. Brent (BZ=F) was up by 2.3% to $63.26.