Indian equities were set to open lower on Wednesday, with Singapore Nifty futures dropping 1.7% to a four-week low as oil prices surged after Iran fired missiles at American forces based in Iraq.

Brent crude futures soared to as much as $71.75 to their highest since mid-September 2019 and by around 0148 GMT was up $1.83, or 2.7%, at $70.10. 

India imports about 80% of its oil needs and a rise in crude prices could spike import bill and prices for essential commodities for the third biggest oil consumer.

Fears of a disruption to oil supplies gripped markets after Iran, in the early hours of Wednesday, launched a missile attack on U.S.-led forces in Iraq in retaliation for the U.S. drone strike that killed an Iranian commander.