In the last weeks we have seen many disruptions and anti-government protests in Egypt. This has had many consequences on the world's economy. However, I feel it is important to point out that it would be frivolous to go about this topic looking only at the economic impact.
The events occurring in Egypt at the moment are of a huge political and social impact. It is, in my opinion, highly remarkable how the use of the internet and social networks has aided in these disruptions in the government policies and has gathered people to fight for their freadom.
Going back to the economic part of this conflict, we can see its effect mainly on the oil prices. The oil price has risen twice above $100, hitting a two-year high. The slowing down of the transport on the Suez Canal and the risk of this even closing are of an immense importance to the economy and our everyday lives. Every day, about 2.5 million barrels of oil pass through the Canal, and the fear about this has caused a downturn in the oil market.
On a more local aspect, the Egyptian stock market went down 10 % - the largest one-day drop in some years. Some rating agencies have also downgraded Egypt, showing again the fear that is raised by these disruptions in the economy.
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