Oil prices have hit its highest level following the US military’s missile attack on a Syrian government airbase. Brent crude surged above $56 a barrel, but later fell back to just over $55.
Syria has limited oil production, but its location in the Middle East and alliances with big oil producers raised worries about a spreading conflict that could disrupt crude shipments. Gold prices were up 0.8 per cent at $1,264.30 an ounce. The dollar’s performance was mixed, falling slightly against the yen. However, it rose modestly against sterling, the euro and the Swiss franc.
Earlier in Asian markets, energy shares rose as a result of the airstrike on Syria, giving a boost to Japan’s Nikkei index. Economic analysts pointed out that the market impact of the attacks was likely to be short-lived, since the US had described it as a “one-off”.
“It was a knee-jerk reaction because markets are starting to come back a little, as it doesn’t seem like there will be further retaliation coming,” said Christoffer Moltke-Leth at Saxo Capital Markets in Singapore.
