Middle East unrest drives up oil price

The link between current unrest in the Middle East ' specifically between Israel and the Palestinian people ' and the world's energy markets may not be immediately obvious, as neither side is a major oil producer. The key is that the wider Arab region, which forms the core of Opec, is a powerful supporter of the Palestinian cause. Commodity markets are therefore concerned an oil embargo may be implemented in support of the Palestinian people, which would drive oil prices to unacceptable levels, so raising inflationary fears that would, in turn, almost certainly derail the economic recove...