The political situation in Syria has some effect on the global financial markets.
An apparent chemical attack by the regime of Syrian president Bashar al Assad on a Damascus suburb on August 21st shifted the consensus in the west regarding a possible military intervention.
On Saturday, reports surfaced that four U.S. battleships were within striking range of Syria.
However, despite of growing estimations that a U.S. led response will take place, it seemed that financial markets only began to encompass the possibility that such an attack could yield unpredictable negative results.
Equity markets, especially those in emerging countries, seemed relatively affected by the rising tension.
The Saudi Stock Market’s Tadawul Index suffered nearly a 3% drop 15 minutes into Tuesday’s trade.
A similar phenomenon took place on Turkey’s Borsa Istanbul National 100 Index, which lost about 1.5% on Tuesday’s opening.
Concerns from the unexpected later cascaded into the energy market as the fear of withheld supply sent crude oil prices from around $106 to a barrel on Tuesday, to as high as $112 on Wednesday.
The out flow of capital from the equity markets also found the ancient metal of kings to be a proper safe harbor as Gold gained 2%, from around $1,403 per ounce, to as high as $1,433, between Monday and Tuesday.
At that point, markets seemed baffled by the uncertainty, but as Russia aligned with Iran saying that a diplomatic solution is needed, markets started moving back to their original positions in light of the possibility that an attack will not take place after all.
On Thursday, the U.K’s House of Commons voted against an intervention in Syria, sending gold back to $1,408 and oil to around $108 per barrel.