Oil prices rose more than one per cent today, extending the previous day’s rally, and safe haven gold pushed towards a record high after Iran’s missile attack on Israel ramped up fears about an escalation in the Middle East, AFP reports.

News of the launch rattled US and European traders and sparked a sell-off on most markets, though Asia fared slightly better, with Hong Kong resuming its China stimulus-fuelled rally as it reopened after a one-day break.

Both main crude contracts jumped more than 5pc at one point on Tuesday after Iran fired dozens of missiles at Israel in response to the killings of Hezbollah and Hamas leaders. Hong Kong soared more than 4pc — passing 22,000 points for the first time since February last year.

“The burning question is whether Iran’s missile strike is a one-off response or the start of something much bigger. Most bets lean towards the former, especially with the US stepping in to back Israel,” said independent analyst Stephen Innes.

“Iran’s oil infrastructure could very well be in their crosshairs. And let’s be real-taking a swing at Iran’s oil lifeline could have far-reaching economic consequences, sparking a severe escalation,” Innes wrote in his The Dark Side Of The Boom newsletter.