The Western powers suddenly look powerless. The Arab revolts have electrified the news and shocked the markets.
Contagion risk has heightened as a result of rising food price inflation, which could lead to political unrest in the Middle East spreading to other areas, warns veteran investor Jim Rogers.
The price of US treasury yields has risen as investors seek the safety of government debt in wake of the Japan crisis.
The rapid rise in the price of crude is reviving fears of a double-dip recession, Chris Iggo at AXA Investment Managers says.
A major earthquake in Japan has rocked markets, which were already fragile yesterday as the FTSE 100 hit a five-week low.
Billionaire investor George Soros has urged Western nations to support revolutions in the Middle East to gain allegiance with new-found democracies.
World markets have responded positively to Brent crude futures falling by more than $3 after the Arab League said it was considering stepping in to end the crisis in Libya.
The price of gold has hit a record high on concerns about unrest in the Middle East and contagion risk from Libya, while oil has topped the $116 a barrel mark.