Investors fear the Iran war could drag on, further limiting shipping through the Strait of Hormuz

Credit : REUTERS/Stringer

The price of oil has hit a five-month high amid fears Donald Trump will ramp up strikes in the Middle East following the midterm elections.

Brent crude, the international benchmark, climbed as much as 2.8pc to more than $116 a barrel, pushing down stock markets in the US and Europe.

It followed a New York Times report that the US and Israel had drawn up plans for renewed strikes against Iran after the midterm elections.

Oil has climbed more than 4pc this week, increasing pressure on stock markets at the same time as fears grow about the valuations of AI companies .

European shares fell on Friday, with the FTSE 100 down as much as 0.8pc, the Cac 40 in Paris down 1pc and the Dax in Frankfurt down 1.1pc.

On Wall Street, the Dow Jones Industrial Average fell as much as 1pc, while the S&P 500 and Nasdaq Composite fell at a slower pace than the previous day.

Traders were rattled on…