The price of oil and gold has jumped after the US launched a missile attack on a Syrian airfield in response to president Bashar al-Assad's regime's launch of a deadly chemical weapons attack.
The attack sent the oil price higher on bets the heightened instability in the Middle East would impact supply. Trading at $54.78 a barrel before the news, Brent crude surged above the $56 mark before settling to trade at $55.46.
'Crude oil prices rallied sharply overnight on the news of the US airstrikes on Syria, as investors saw chances of supply disruption skyrocket due to the country's proximity to major Opec nations,' said Mike van Dulken, head of research at Accendo Markets.
Fears over geopolitical tensions also boosted safe havens, with the gold price jumping from $1,250.60 an ounce to $1,269.80 overnight , its highest level since the US presidential elections, before settling at $1,264.86.
The FTSE 100 edged seven points lower, with miners dropping to the bottom of the index as the copper price fell. Fallers included:
- Anglo American (AAL) -2.2% at £12.17;
- Rio Tinto (RIO) -2.1% at £31.88;
- BHP Billiton (BLT) -1.7% at £12.53;
- Glencore (GLEN) -1.6% at 314.1p;
- Antofagasta (ANTO) -1.4% at 848.5p.
Randgold Resources (RRS) jumped to the top of the index, boosted by the rise in the gold price, up 2.3% at £72.75.
Energy stocks also rose following the oil rally. Shell (RDSb) rose 1.1% to £22.33 while BP (BP) added 3p to 467.3p.