Oil Jumps 3% to $63 as Iran Shoots Down US Drone in Gulf

Oil jumped more than 3% to above $63 a barrel on Thursday after Iran shot down a U.S. military drone.
Oil Jumps 3% to $63 as Iran Shoots Down US Drone in Gulf
Pumpjacks pump crude oil near Halkirk, AB, in this file photo. The Canadian Press/Larry MacDougal
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LONDON—Oil jumped more than 3 percent to above $63 a barrel on Thursday after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington.

Also supporting oil were expectations that the U.S. Federal Reserve could cut interest rates at its next meeting, stimulating growth in the world’s largest oil-consuming country, and a drop in U.S. crude inventories.