Summary on "Scary Oil"

The most serious threat to the international economy today is the continuous surge in oil prices, with the fear of war between Israel and Iran being the main cause for concern. This is due to the fact that political instability in the Middle East is the main reason for the past three economic recessions. As the US and Israel might take military actions as a last resort to stop Iran from developing nuclear weapons, Iran might retaliate as proven by its capability to attack Israel's embassies. This could intensify the conflict in the Middle East, leading to further increase in oil prices which will result in another global economic downturn.