Last week, US lawmakers defied warnings by Turkey and voted to label the Ottoman Empire's World War I massacre of Armenians as "genocide." I said then that the resolution was an act of stupidity; unfortunately I am being proven right.
With the stupid vote by the Americans, the Turks are now NOT playing nice with their enemies. Tensions mounted between Turkey's government and Kurdish rebels located in northern Iraq and Turkey's army said that it had began shelling Iraqi territory following an attack on a military outpost with rockets and gunfire from across the border by Kurdish rebels.
So now, the Americans are struck between protecting their Kurdish allies in Iraq or their Turkish allies in NATO. Wonderful! In case anyone is not taking this seriously in Singapore, the rising tension is the main cause for the rise in oil prices. And we all know how important that is to the economy.
The world's oil futures immediately cross the important $85 and then kept on going up! Oil close at 86.13 dollars a barrel. The oil prices spiked as the Turkish government are seeking parliamentary approval for a potential military incursion into neighbouring Iraq to crack down on Kurdish rebel bases there. Yes, they are just seeking approval. Just imagine what the oil price will be if and when the Turks do attack!
The White House are now urging "restraint" from Turkey. Maybe they should have though of that before the stupid vote; a vote that could wreck the world's economy in the coming months.