As a consequence, the speculative panic over the implications for the oil market prompted simultaneous stock-building by Western governments and companies.

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Traders returned to panic mode on Tuesday in response to the rising price of oil and the growing uncertainty in what is now being referred to as MENA (Middle East, North Africa).

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If the world oil supply peaked one day and then fell away sharply, prices would indeed rocket, shortages and panic buying would wreak havoc and a global recession would ensue.

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Still, it would be foolish to ignore the possibility that the repercussions of the present crisis will be made much more far-reaching if it precipitates the sort of panic that took hold after the accident at the Three Mile Island nuclear facility in 1979 or the oil leak off Santa Barbara a decade earlier.

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However, crude oil prices went into a free fall and the U.S. dollar index soared, which ultimately led to panic-type selling in most markets, including gold and silver.

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