Oil prices hit six-month high

<p>Oil prices are at their highest for six months.</p>

Oil prices have hit a six-month high today (August 27th) as speculation grows the US is considering an imminent response to the ongoing civil unrest in Syria.

The country's leader Bashar al-Assad has been accused of using chemical weapons in the war.

After secretary of state John Kerry described the move as a "moral obscenity", the price of Brent crude oil rose above $113 (£72.70) a barrel in London trading, while prices in the US rocketed.

Stock markets across Europe and the US dropped as well, with investors waiting to see what action the US plans to take against al-Assad.

Germany's Dax and the French Cac 40 index fell by around two per cent during the afternoon session and the FTSE was 0.6 per cent lower at 15:00 BST.

Although Syria is not one of the major oil producers in the Middle East, there are growing fears the instability of the country could spill over into neighbouring nations.

With civil unrest also ongoing in Egypt, the price of oil could climb even higher in the coming weeks and months.

Find out about commodities trading and learn CFD strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.