MSN: Could the Middle East crisis spell economic disaster?

For the global economy this latest conflict, like so many before, is not about what has happened but what might happen. Neither Lebanon, nor Israel for that matter, produces significant amounts of oil. If Syria, a small producer, or more particularly Iran, a huge one, are drawn into conflict then oil supplies may be at risk. This matters particularly now because there is almost no spare capacity in the world oil supply system. Even a small cut in output could have a big effect on oil prices.