The risk of an attack by Western powers on Syria contributed to falls in European shares yesterday, with travel stocks bearing the brunt of investor concerns, but a spike in oil prices boosted energy suppliers.

The FTSEurofirst 300 was down 3.80 points or 0.3 per cent at 1,198.56, finding technical support around 1,192, having broken below the 50-day moving average.

Germany’s Dax found technical support around 8,150 – its 100-day moving average.

The prospect of a US-led attack on Syria, possibly within days, has raised concerns about the impact on the broader region.Kevin Gardiner, head of investment strategy in Europe at Barclays Wealth, said in the short term the geopolitical backdrop would be difficult to trade as there are too many unknowns.

“Short-term volatility would be the best way to play it,” he said.

The cost of buying options to protect against future market swings, as measured by the Euro STOXX 50 volatility index or VSTOXX, jumped to a one-and-a-half month high of 22.3 points.

The conflict in Syria has contributed to investors cashing in an eight per cent rally in European stocks since late June and purchasing traditional safe-haven assets such as government bonds and gold, while the oil price has spiked on supply concerns.

Societe Generale said the North Sea crude oil benchmark could surge as high as $150 per barrel if the war affects oil producers like Iraq.

Travel and leisure stocks fell 1.4 per cent, led by airlines such as Lufthansa. On Tuesday, Investec said in a note that prices above $100 a barrel were a severe headwind to airlines’ profitability.

The threat of the conflict spreading throughout the Middle East also hit tour operators that sell holidays in the region, with Tui down 0.7 per cent. Cautious guidance from Europe’s largest hotel operator, Accor, which fell 4.4 per cent, also weighed on the sector.

But the jump in crude prices boosted heavyweight oil and gas stocks, which rose 2.4 per cent, and helped marginalise wider index losses.

International gas and oil producer BG Group jumped 4.7 per cent, while Norway’s Statoil rose 4.2 per cent, helped by a new discovery.

Away from oil, the FTSEurofirst 300 is still up 5.3 per cent in 2013 but has pulled back 3.9 per cent since mid-August due to an expected reduction in US monetary stimulus, a political crisis in Italy and now the escalating crisis over Syria.

“There is profit taking here and people are trying to protect their portfolio... as a tactical element because they have performed quite well year to date,” said Sergio Trezzi, head of retail sales and client service for continental Europe at Invesco.