HL's Derren Nathan: Oil and gold prices have spiked as Middle East tensions reach boiling point

'$100 mark not out of the question'

As speculation mounts around the prospect of strikes on Iran’s oil facilities, Brent Crude prices have been heading towards the $80 mark.

How high they go depends somewhat on how severe retaliatory action by Israel and its allies proves to be, following a missile attack by Tehran.  OPEC members should be able to absorb even a complete cessation of Iranian production. However, if Iran were to block the strait of Hormuz, one of the world's most important shipping channels, there could be a much more significant price shock, with the $100 mark not out of the question in this scenario. Perhaps it is no surprise that investor sentiment towards the oil majors has rallied after oil prices hit two-year lows just a few weeks ...