Oil prices soar as US launches airstrikes in Middle East

The Australian sharemarket has made a positive start to the week while oil prices have climbed after tensions escalated in the Middle East.

The single sharpest fact is that the US has launched airstrikes on Iran in response to the killing of US troops, while Iran has fired missiles toward Jordan. This move has sent oil prices jumping over 2% in early trade, pushing the S&P/ASX 200 up 35 points, or 0.4 per cent.

But the US had already launched airstrikes against Iran a day earlier in response to the killing of two US personnel in a drone attack in Syria. The US has also imposed new sanctions on Iranian officials and entities in response to the killings.

Oil prices advanced over the weekend and jumped more than 2% this morning as the US launched more airstrikes at Iran. The price of Brent crude oil rose 1.6% to $76.41 a barrel.

While the exact reasons for the airstrikes are not clear, US officials have accused Iran of conducting a coordinated attack on its personnel in Iraq. Iran has denied any involvement in the attack.

The airstrikes are the latest escalation in a long-standing conflict between the US and Iran. The US withdrew from the Iran nuclear deal in 2018, and since then, tensions have been rising.

In the early hours of the morning, the US launched a barrage of airstrikes against Iranian military targets in Syria and Iraq. The airstrikes were in response to the killing of two US personnel in a drone attack in Syria.

The US has said that it is seeking to hold Iran accountable for its actions in the region.

The ASX 200 has surged 35 points, or 0.4 per cent, in early trade, while the Australian dollar has fallen to US69.71¢.

The Dow Jones Industrial Average dropped 406 points, or 0.8 per cent, and the Nasdaq composite sank 1.4 per cent. The S&P 500 fell 1 per cent to finish its first losing week in the last three.

Meanwhile, tech stocks have sold off worldwide, with indexes tumbling 6.5 per cent in Taipei, 4 per cent in Tokyo and 3 per cent in Shanghai.

The market has been on edge due to worries about the impact of the US-China trade war on the global economy.

The recent escalation in tensions between the US and Iran has added to the uncertainty in the markets.

In response to the killing of the two US personnel, the US launched airstrikes on Iran, further escalating the situation.

The US has not specified the names of the personnel killed.

The US has accused Iran of supporting extremist groups in the region.

The latest developments in the conflict have further increased tensions between the US and Iran.

The US has imposed new sanctions on Iranian officials and entities in response to the killings.

Iran has denied any involvement in the attack.

The airstrikes are the latest move by the US to pressure Iran into negotiating a new nuclear deal.

Iran has refused to negotiate a new deal with the US.

The conflict has been escalating for months, with both sides trading accusations.

The US has accused Iran of conducting a coordinated attack on its personnel in Iraq.

Iran has denied any involvement in the attack.

The airstrikes are the latest move by the US to hold Iran accountable for its actions in the region.

The US has said it is seeking to hold Iran accountable for its actions in the region.