The U.S. plans to partially evacuate its embassy in Iraq amid rising tensions between the U.S. and Iran, officials told multiple media outlets on Wednesday. U.S. staffers who are deemed nonessential will be removed from the embassy in Baghdad, the State Department told The Associated Press.

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 Iraqi dinar fell slightly on Thursday, as the country responds to the latest round of potential escalation between the United States and Iran.