Oil prices increased to the highest level yet following Egypt’s political crisis, roiling financial markets and pushing the Portugal government on the brink of a collapse. With the New York oil prices increasing to above $100 a barrel, the highest since last May, stocks the world-over are showing significant losses.
Effects of Soaring Oil Prices
The ill-effect of soaring oil prices were particularly felt in Portugal where the PSI stock index was already trading 5.4 percent lower, an effect of two leading Cabinet ministers quitting the government.
Reacting to this development, market analyst at IG, David Madden said that the Eurozone could be headed casino pa natet for another ‘summertime crises’ even as the Portugal government fell like ten-pins and bond yields spiked.
The ill-effects of soaring oil prices were felt throughout Europe too, where stocks plunged sharply. Asian markets also closed lower than expectations.
Though Egypt does not produce oil, it controls the Suez canal, which is one of the busiest oil shipping lanes in the world.