New high for Brent crude

The continuing Israeli offensive against Lebanese-based Hizbollah guerrillas has seen Brent crude mark a new high this morning.

The front-month contract traded at $78.10 and, with no sign of any abatement in the operation (in spite of widespread international calls for restraint) the market is looking for a test of $80.

The situation in the Middle East is likely to dominate across all markets with unrest in Iraq given a new emphasis in the context of conflict in the area.