Oil roared above the $120 a barrel level on Thursday and gold prices jumped amid mounting geopolitical tensions following Russia’s decision to suspend military co-operation activities with Nato in response to a missile shield agreement between the US and Poland.

Nymex October West Texas Intermediate touched a session high of $122.04 before easing back to trade $5.62 higher at $121.18 a barrel while ICE October Brent rose $5.80 to $120.16 a barrel.