Egypt crisis fuels oil price but raises contagion fears

The Egyptian crisis has boosted the price of oil to a two-year high but sent equity markets lower, causing some managers to warn of contagion risk to the global economic recovery.

However, others believe the outcome will be positive as civil unrest leads to greater political stability in the long term. The price of Brent crude oil soared to over $100 dollars a barrel on fears the Egypt crisis will disrupt oil transportation through the region via the Suez Canal and pipeline. Equity markets in the MENA region declined significantly between 25 January and 1 February, while markets in parts of Europe and Asia also fell as the events in Egypt caused a ripple effect. Eqypt's markets have been closed since 30 January. Templeton's emerging markets expert Mark Mobiu...