Rising tensions with Iran and fears of an Israeli strike prompted the U.S. to move some of its nonmilitary personnel out of the region.

The price of oil initially increased more than 4% when news of the US evacuation broke, in anticipation of regional insecurity potentially leading to supply problems. Around 2,500 US troops are based in Iraq, according to the defence department.

The move comes after the Iranian defense minister warned that Tehran would target U.S. bases in the area if tensions escalated.