The widespread protests in Egypt, following on from the ousting of the Tunisian government earlier this month, have made headlines around the world. However, whilst media outlets are focussing on the possibility of whether Egypt will see a change of power after nearly 30 years, in the background the markets have wobbled over fears around the Middle East.

The primary reason for this is that Egypt, whilst not the biggest economy in the region, is absolutely vital to European energy markets. The Suez Canal is a major source for oil from the Gulf, and there are fears that chaos in Egypt could lead to the disruption of the Canal and therefore of the oil supply to the West.

The oil price has already started to rise, even though the Canal is still operating at full capacity, but there are other concerns too.

Egypt is a major tourist destination, and almost all the major travel and air companies saw a drop in their share price this morning as a series of states around the world warned their people that travel to the region was not safe.

There is a more serious political issue in that Egypt is also one of the few states to have any sort of diplomatic dialogue with Israel, and, as it shares a border with Israel, there are genuine concerns that a power vacuum and the potential rise of more extreme factions within Egypt could lead to yet another flare up in the Middle East.

Finally, there are already fears in neighbouring countries that the unrest in Egypt could spread, particularly in regards to Algeria and Libya. If the protesters are successful in ousting the government in Cairo, there's every chance that the wave of popular uprising will continue across the region, bringing further instability.

These events only highlight the vital importance of national security matters and of the Middle East when it comes to how the markets perform, and this is even more the case when it comes to strategically important areas such as the Suez Canal. Cfd trading specialists always warn their traders to keep abreast of events that might have an impact on their particular market, and that is good advice for anyone involved in, or looking to become involved in, the markets in any capacity.