Summary Exercise in Class 5/9/13

The increase in oil prices caused by fear has detrimental effects on the global economy. Military conflict between Israel and Iran has driven oil prices skyward mirroring the last 3 global recessions that was caused by the Middle Eastern conflict. The increase in oil prices in 2008 aggravated the financial crisis plunging the global economy into recession.Punitive economic sanctions were taken to restrict the nuclear development of Iran, but Iran responded with world-wide attacks on Israeli embassies. As a result, the US is preparing for future military confrontation, which may cause rising oil price, global economic turmoil and instability in the Middle East.