This tension did not just stop at households across the globe but also hit the stock market.
On Tuesday, a visible rippling effect of sinking stocks flooded the market primarily in the Middle East.
Dubai’s stock index faced a hefty 7% fall which is the sharpest drop it has seen since their financial crisis. Many foreign investors have already started fleeing which is fuelling the panic.
The neighbouring Emirate of Abu Dhabi also fell 3%.
The rest of the regions stock markets are in similar states due to fears that military intervention will cause chaos throughout the entire region.
If the US do go through with their talks to intervene in Syria, the entire region will be destabilized and ultimately, crippled. Middle Eastern countries that rely heavily on trade and tourism such as the UAE, will face the greatest losses.
Oil & Gold
In contrast, the prices of crude oil and gold sky-rocketed. Crude oil had the highest overnight change in the past 6 months due to fears of a disruption in the pipelines from the region if US mediation occurs.
If the United States does ultimately involve themselves in the Syrian civil war then the price of oil is expected to continue climbing and will eventually reach $119 a barrel, which is the highest it has been this year.
Also, the price of gold increased by a significant amount due to the looming fears. The price of gold increased by $27 dollars implying an overall increase of 2%.
The US dollar has also increased against the Yen, which is at its lowest point since the first week of August. The dollar has also increased against the Swiss franc at 0.9190 francs.
Governments across the world have seen an increase in the purchase of government bonds seen as safe investments in times of trouble.
In addition to the turmoil in the stock market, several emerging market currencies are taking heavy blows. The Indian rupee is continuing to suffer falling about 17% this year. It is now valued at 66.08 rupees to the US dollar.
With the ongoing political trouble the region is about to face, it is unlikely that it will make a recovery any time in the foreseeable future.
This is particularly true to India because as much as 80% of its oil is imported and with the global increase in price, it seems that their deficit hole is about to get deeper.