egypt protests

Most Wall Street experts are far better equipped to analyze a corporate risk over a political threat. But today, it's political unrest in the Middle East and beyond that's driving world markets. So we asked Ian Bremmer, president of political risk consultancy The Eurasia Group, to break down the major developments and what investors should expect.

Despite all the worry over the impact of rising oil prices, recall that the U.S. is now a largely services-based economy. And observe that the rising wages that have led to real overall cost rises in decades past are nowhere to be found today. Exhibit A is in Wisconsin.

Cathay Pacific CEO Tony Tyler says when airlines last raised fares in 2008, most travelers kept on flying. But as Mideast upheavals send oil prices skyward and airlines hike fares again, the impact on the bottom line could be quite different.

The markets may have had a rough weak as U.S. GDP growth was revised down and Middle East unrest caused oil prices to rise, but the consumer sentiment index rose to its highest level since January 2008. Sentiment has risen for about six months -- an encouraging sign -- but oil prices could sour the mood.

Political turmoil in the Middle East keeps growing, with the ouster of Egyptian president Hosni Mubarak, rebellion in Libya and riots in Bahrain. It's no wonder that businesses with investments in those countries are feeling nervous. And that's benefiting purveyors of political-risk insurance, who are seeing premiums rise.

Egypt's famed antiquities and tourism sites are reopening following the political unrest there. But heeding warnings from Washington, many American travelers are steering clear of the region for now -- disrupting the tourism industry in both the U.S. and Egypt.

Investors sure have plenty of worries these days. But here's a key point to keep in mind: While higher energy prices will restrain overall global growth, they could hurt emerging markets far worse than the U.S. -- and that difference could help boost demand for domestic stocks.

With Mideast turmoil chasing oil higher and stocks lower, it's a good time to check the charts and see what price levels seem to be key "lines in the sand." Some indicators have been warning for months that the steep rally was preparing to reverse.

Stocks fell again on Wednesday, and oil prices briefly crossed the $100-a-barrel mark after violence escalated in Libya. Oil traders are spooked about the possible spread of turmoil. Tech bellwether HP's disappointing outlook also hurt.

Social media played a key role in the successful revolutions in Tunisia and Egypt, and more dictatorial regimes are facing protesters who use the Internet as a weapon. But could the power of social networking create similar revolutionary changes in the corporate world?