The rocket attack on Israel’s southern city of Eilat on Wednesday may stir up even more tension in the region. A press release said Israeli Prime Minister Benjamin Netanyahu held security consultations to “discuss how to respond to the firing.” The IDF website reported that the rocket was fired from the Sinai.
While technically under Egyptian control, the Sinai is something of a no-man’s land infested with terrorists. It’s unlikely Israel would strike at the Sinai, but in the past attacks from the Sinai have had connections to Gaza. More fighting there is possible, if unlikely.
Regardless, more Middle East violence can make oil and gas investors uneasy. Middle East oil prices have been dropping, a positive trend for prices at the gas pump. Your wallet wants the pattern to continue.
In addition, Israel remains America’s top ally in the region, while Egypt receives millions of dollars from the US each year. The US is doubtless watching the situation as it unfolds between the Egyptian Sinai and Israel.
(By Joshua Spurlock, www.themideastupdate.com, April 17, 2013)