Oil prices surged on Wednesday morning with US crude leaping to a two-year high as investors prepared for a possible western military strike on Syria.
Although Syria is not a major oil producer or transit point, investors fear that western intervention there could spill over into the rest of the region, potentially affecting oil supplies from other producers such as Iraq.
Brent crude oil futures, the global benchmark, have leapt 6 per cent in the past two days, on Wednesday hitting a fresh six-month peak of $117.34 a barrel. US West Texas Intermediate rose to $112.24, its highest since May 2011. By late morning, prices had eased somewhat, although both benchmarks were still up more than $1 from Tuesday.
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