Posts tagged “energy-water-food nexus”

Geopolitical Risk Continues, Part Two

Turmoil in Egypt continues to roil oil markets and confound Middle East regional stability. Goldman Sachs said Monday, August 19th, five days after the violence escalated, it expected tighter oil markets to propel Brent to $115 “in the very near term.” More interesting though are the shifts occurring in the geopolitical landscape of the broader Middle East.

Saudi King Abdullah publicly gave his approval and support for the military-backed government of Egypt. He pledged a $12 billion aid package along with the UAE and Kuwait, four times as much as the military and economic grants from the U.S. and the European Union combined ($1.5bn and $1.3bn respectively). The threat of political Islam vis-a-vis the Muslim Brotherhood is seen as potentially up-ending stability in the Kingdom. This high-stakes game of regional poker has just gotten more complicated. The outcome, which may occur in waves of violence and instability, could take many years to be realized.

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