Crude rises on Iran missile tests

The missile tests stoked concerns about geopolitical risks

Crude oil prices have risen on news that Iran successfully test-fired long and medium-range missiles.

In London, Brent crude rose by over $2 to $138.50 a barrel, while US light, sweet crude rose by the same amount to $138.12 a barrel.

The US dollar also dipped after the tests fuelled worries about geopolitical tensions.

Iran's state media reported that nine missiles were tested, including one Tehran has said could reach Israel.

Crude prices are still below the record price of almost $147 a barrel set in London last week.

The broader geopolitical risk - with the uncertainties revolving around the newsflow from Iran...is playing into market sentiment Jeremy Stretch, Rabobank

Oil prices had fallen sharply on Tuesday on the assumption that a global economic slowdown would lower demand for oil.

News of the missile tests pushed the dollar down against the euro, which changed hands at $1.5703

Further risks

Geopolitical risks were heightened further after three policemen and three gunmen were killed in an attack on the US consulate in Istanbul.

The US currency also fell against the Swiss franc, which is regarded as a safe haven by many investors.

"The broader geopolitical risk - with the uncertainties revolving around the newsflow from Iran and ... Turkey - is playing into market sentiment," said Jeremy Stretch, a strategist at Rabobank.

The US currency fell 0.2% to 1.0321 Swiss francs.

The missile tests occurred at a time of increased tension over Tehran's disputed nuclear programme.