The reason why the oil prices around the world are reactive whenever the tension escalates in the Middle East
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Geopolitical developments are easily reflected by the energy markets particularly when they relate to the Middle East. The area is home to some of the biggest oil reserves in the globe and a major buyer in the global supply. Traders and governments pay much attention to the situation when political tension or conflict arises. Any little disturbance or the fear of disturbance is enough to produce instant responses in oil markets, which would leave the price soaring within minutes.