Summary - "Scary Oil"

High oil prices may dampen the economy although there are ample supplies. Since 2011, there has been a 25% increase in oil prices due to the fear of military dispute between Israel and Iran for the reason that political disagreement in the Middle East previously caused a rise in prices. The current decline in economy was also aggravated by its sharp increase. If there are still no agreements between both parties, U.S and Israel may have to respond in a military way to stop Iran from producing or having the ability to produce nuclear arms which could further strain the situation. U.S and Israel are joining forces for fear that a war becomes inevitable. The result of all is that oil prices would further escalate and eventually lead to a global recession particularly when economic growth is already weak.