Oil prices jumped above $103 a barrel for Brent crude on Thursday amid the latest violent clashes in Egypt between pro-democracy protestors and supporters of embattled president Hosni Mubarak.
The price is now over 8 per cent higher than before the turmoil started last week – a clear sign of concern but not of panic. Yes, the Suez canal is a vital supply line. And yes, there are some risks of contagion to the big oil exporters. But investors seem to be holding their nerve.
Stock markets in the Middle East told a similar story. After dropping sharply in their initial response to the crisis and then recovering they were little moved on Thursday by the latest escalation of violence – with Dubai down 1 per cent but Saudi Arabia up 2 per cent during trading.
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