Oil prices surge after Israeli attacks in Iran

Firefighters work the scene of an explosion at a residence compound in northern Tehran, Iran. Picture: AP Photo/Vahid Salemi

Oil prices have surged after Israel launched an attack on Iran's nuclear programme with financial markets anxious over retaliatory action.

The price of Brent crude jumped nearly 10% higher at one stage before easing back a little to stand 7% higher at $74 a barrel.