Brent Spikes On Possibility Of Military Action Against Syria
As the likelihood of military strikes in Syria rose on Wednesday, Brent crude oil prices jumped to six month highs as investors worried about what that would mean for oil supplies coming from the Middle East.
Brent prices rose to $115.72 at 7:45 GMT on Wednesday morning as investors waited for accusations that the Syrian government used chemical weapons on civilians to be confirmed or denied.
US officials have issued strong statements claiming that the Syrian government's involvement in the chemical weapons attacks is undeniable. The suspected chemical attack took place in Damascus last Wednesday and allegedly killed at least 300 people.
With strong evidence suggesting that the Syrian government was involved in the chemical attack, the US has taken a strong stance and plans to punish President Bashar al-Assad with targeted military attacks. CNBC reported that those attacks could happen as early as Thursday.
Although Syria produces only a small percentage of the oil coming from the Middle East, US military action in the fragile region could ignite a larger problem. Investors are especially wary as this incident comes on the heels of Egypt's political unrest, which still hasn't been resolved.
The situation in Syria could is also causing tension between the US and its UN allies Russia and China. Both nations have been vocal about their opposition to any intervention in the Middle East. Investors are also worried that violence in Syria could eventually spill over the nation's borders and affect more significant oil producing nations like Iraq.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.