By Jonathan Davies

Oil prices rose by 6% after Saudi Arabia and its allies launched airstrikes against rebels in Yemen.

The bombing caused concern that supply from the region could be affected, causing a shortage. Saudi Arabia is the biggest producer of oil in Opec, a body of oil producing nations.

Brent crude oil immediately jumped 6% to $59.71 before slipping back to $56.50.

The increase eased off after it became clear that no shipments from the Middle East were under immediate threat.

However, Yemen is located near one of the most important global shipping lanes and the country is heading for a civil war, and there are fears than Iran could get involved.

Realistically, supply isn't likely to become a problem - certainly not a crisis. The massive fall of oil prices since last summer was as a result of over supply.