Oil prices briefly hit five-month highs as investors anxiously waited to see if Iran would retaliate against US attacks on its nuclear sites.
Brent crude, the global benchmark, rose by as much as 5.7pc to more than $81 a barrel when trading got underway for the first time overnight in the wake of Donald Trump’s intervention in the Middle East.
Iran’s parliament voted to respond to the US strikes by cutting off vital shipping lanes in the Strait of Hormuz, where around a fifth of global oil supplies pass through.
However, Brent was last up a relatively restrained 1.1pc at less than $78, with no sign of panic selling across markets.
The Iranian parliament’s decision is not binding, and state television said a final decision would rest with top Iranian security officials, Reuters reported.
