NEW YORK – The possibility of a US-led military strike on Syria hit emerging market assets hard on Wednesday and pushed oil prices to a six-month high while triggering a safe-haven run to gold and the dollar. Oil prices surged. Brent crude hit a six-month high of $117.34 a barrel on fears Western countries were preparing to attack Syria, raising concerns over the security of oil supplies across the Middle East, which pumps a third of the world's oil. Brent was at $116.04 per barrel, up $1.69, while US crude rose $1.09 to $110.10, after hitting an intraday peak of $112.24 – its highest since May 2011. French bank Societe Generale said Brent could spike to $150 if the conflict in Syria spreads and disrupts supply in the region. Syrian oil output is not a factor: it has fallen to 50,000 barrels per day from around 350,000 bpd when the unrest started two years ago. “The concern is that an attack on Syria will reverberate through the region, increasing the spillover into other countries and possibly resulting in a larger supply disruption elsewhere,” said Michael Wittner, oil analyst at the bank. Over the coming days, Brent could surge to $125, either in anticipation of an attack or in reaction to its start, he said. In the scramble for safety, investors turned to gold, which hit a 3-1/2 month peak above $1,430 an ounce, and bought the dollar on a view that it was the ultimate refuge from the risks of intensified upheaval in the Middle East. The dollar rebounded against the yen and climbed versus the Swiss franc as investors sought the greenback's safety. In midday trading, the dollar was up 0.7 percent at 97.66 yen, recovering from an intraday trough of 96.83 that matched the low touched two weeks ago, according to Reuters data. – Reuters
