Oil prices jumped higher and stocks sank after Israel launched a retaliatory strike against Iran.

Brent crude, the international benchmark, leapt as much as 4.2pc higher to more than $90 a barrel after explosions were reported near a military base early this morning.

Western officials told US media that Israel had launched missiles, while Iran said it shot down drones around the Isfahan air base close to a major nuclear facility.

It follows an attack by Iran at the weekend in which it fired more than 300 missiles at Israel.

Asian markets dropped sharply in overnight trading as investors raced towards safe haven assets like gold, which rose as much as 1.3pc to $2,417.84 an ounce - close to its record high.

In Tokyo, the Nikkei 225 closed down more than 1,000 points while Hong Kong’s Hang Seng fell 1.1pc.

Read the latest updates below.