Mid-East fears send oil prices rocketing

OIL hit a record high above $78 a barrel yesterday as fighting between Israel and Hezbollah guerrillas in Lebanon heated up, while US stocks slid on investors’ worries about the Middle East conflict and General Electrics’ poor outlook.

Gold prices shot up to a seven-week high at $669 an ounce, while oil hit a record $78.40 a barrel in overnight electronic trading.

The dollar rallied against the major currencies, advancing in particular against the yen after the Bank of Japan raised interest rates on Friday for the first time in six years.