The safe-haven Japanese yen jumped and gold shot higher on Wednesday after a rocket attack on a base hosting U.S. troops in Iraq renewed fears of a broader conflict breaking out in the Middle East and sent investors rushing to safety.

Rockets were shot at multiple targets including Iraq's al Asad airbase, which hosts U.S. forces, U.S. officials told Reuters, speaking on condition of anonymity.

The Pentagon said the missiles were launched from Iran, while Iranian news agency Mehr reported the attack was launched by Iran's Islamic Revolutionary Guard Corps.

The attack happened hours after the funeral service of an Iranian military commander, whose killing in a U.S. drone strike in Baghdad last week has plunged the Middle East into a new crisis and stoked fears of a wider conflagration.

The yen , regarded as a haven in times of turmoil by virtue of Japan's status as the world's biggest creditor, rose 0.6% to a three-month high of 107.74 yen per dollar.

Shares slid and gold jumped $18 an ounce to $1,592.50 per ounce, its highest since 2013. Oil erased recent losses on fears any conflict in the region could disrupt global supplies.

Safety flows also buoyed the Swiss franc 0.3% higher to 0.9674 francs per dollar, and supported the greenback which had also revived overnight on the back of strong U.S. data.

The dollar rose 0.3% on the New Zealand dollar and hit a three-month high against the Aussie , which has been sliding as markets begin to wager that the economic toll of wildfires sweeping the country could force a rate cut.

Source : Reuters