Oil prices have reached their highest level since February following a sharp rise triggered by the threat of military action in Syria.
London Brent oil prices saw their biggest one-day rally in six months yesterday and were up another 0.3% to $115 a barrel, while the price of US crude jumped to an 18-month high of just over $109 a barrel.
Global stock markets have also slid into the red as investors flock to safe-haven assets, such as gold and government bonds.
Meanwhile gold prices rose to hit a three-and-a-half month high of $1.433.85 an ounce at one stage in a flight to safety as traders believe the precious metal will hold its value better in times of uncertainty.
Syria is not a major oil producer, but there are concerns that conflict in the region will disrupt the flow of oil from the Middle East, with worries that violence could spread to other oil exporting countries, such as Iran and Iraq, and hit important shipping routes.
The rising cost of crude provided a boost to oil stocks on the London market, with Royal Dutch Shell up 2% and BP nearly 1% higher, while oil and gas exploration and production group Tullow Oil was another beneficiary, up 2%.
