Anti-government protests are increasing in Egypt day by day. However, the outcome of the bloody demonstrations in Egypt remains unclear. In the meantime, the United States is condemning the violence and has urged Hosni Mubarak, the present President of Egypt, to step down.
Can Egypt's political situation affect the U.S. economy?
The turmoil in Egypt has already affected the U.S economy. Oil prices have been increasing in the past two weeks. Rising in oil prices will hold back the economic growth of the country. Apart from this, the bloody demonstrations in Egypt has increased risk premiums on shipping insurance which will in turn further increase the cost of oil and gas imports.
The political unrest in Egypt has increased the concerns about the operations in the region of Suez Canal. This is an important point between the Mediterranean and the Middle East and Asia for petroleum products and other types of cargo.
Could the US military get involved in this turmoil?
It is quite unlikely that the US military will get involved in the political unrest. The present protests in Egypt will not pose any direct threat to the United States. Also, it has been noted that the United States does not want to interfere with the democratic aspirations of the common people.
How will the Egyptian turmoil affect Washington D.C.?
It has been noted that if the political outcome in Egypt turns out to be negative for Israel, then there can be serious effects in American politics. The Obama administration will be expected to come up with new strategies which will protect America's interests especially in the energy sectors. This might be a tough call for the administration which is facing economic and political constraints at this point of time. This is because new strategies will cost money which is presently in short supply due to the rising American debt.