As the possibility of a US military strike against Syria’s apparent use of chemical weapons last week grows more certain, the price of oil is rising worldwide as geopolitical tensions in the Middle East continue to grow and instill fear in both investors and the market.
West Texas Intermediate (WTI) crude oil prices jumped to $112.24 a barrel today, while Brent oil rose 1.7% to $116.27 a barrel, Bloomberg reports. Brent could rise to more than $150 a barrel if conflicts in the Middle East disrupt supply. In addition, the VIX volatility index, a measure of the market’s fear, spiked 19.3% to 16.68 Tuesday afternoon, FOX Business writes. This does not only affect investors attitudes towards oil, but overall consumer spending as well—which accounts for about two-thirds of the economy.
According to The Wall Street Journal, U.S. officials said that due to a number of intelligence documents, including satellite images and intercepted communications, they were certain that Syrian President Bashar al-Assad’s regime had used chemical weapons against their people.
While Syria isn’t a major oil producer, US military action in the country could drag oil-rich countries such as Saudi Arabia and Iran into the conflict.