Oil jumps after Iran votes to close Strait of Hormuz
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.
Marco Rubio, the US secretary of state, urged Iran's allies – including China – to prevent Tehran from shutting the Strait of Hormuz, saying it would be a 'terrible mistake'.
Charu Chanana, an analyst at Saxo, said: 'Markets may be responding not to the escalation itself, but to the perception that it could reduce longer-term uncertainty.
'That said, any sign of Iranian retaliation or threat to the Strait of Hormuz could quickly shift sentiment and force markets to reprice geopolitical risk more aggressively.'
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