Oil price rises as US says Israel has struck Iran [Video]

Oil and gold prices have jumped after US officials said an Israeli missile had struck Iran.

Brent crude, the international benchmark, rose by 1.8% to $88 a barrel while gold briefly came close to a record high before falling back to nearly $2,400 an ounce.

Investors have been closely watching Israel’s reaction to Iran’s direct drone and missile attack last weekend.

There are concerns a worsening conflict in the Middle East could disrupt oil supplies.

Oil prices had jumped by as much as 3.5% initially. However, gains receded after Iranian state media claimed that there was “no damage” in Isfahan province where there had been reports of explosions. 

Sharp and sustained rises in oil prices risk fuelling inflation. Countries are heavily reliant on the commodity, which is used to produce fuels such as petrol and diesel.

Fuel and energy prices have been a major driver behind the higher cost of …