(MENAFN– ecpulse) The recent diplomatic breakthrough in the geopolitical tensions between the world’s most powerful nations eased after Syria agreed to a Russian proposal to turn over its chemical weapons stockpile drove oil and gold prices lower last week.
Prices for crude oil and gold ended lower last week, with oil hitting a 2-week low while gold plunged to five-week low after Syria made concessions that could defuse the showdown over its chemical weapons.
The prices of commodities like oil and gold has been rising for the past two weeks following President Barack Obama`s call for military action against Syria because of its alleged use of chemical weapons against civilians. However, the tensions had faded last week after Syria accepted a proposal by Russia to give up its chemical weapons, potentially winning a reprieve from a threatened U.S.-led military air strike.
Many investors have been keeping a keen eye on the conflict in Syria and the prospect of escalating tensions in the region as it could drag in Western powers. Beyond this, it would lead to a wider conflict, dragging in nations likes of Iran or Israel, and possibly other countries in the area as well.
In a diplomatic breakthrough, Syria has accepted the Russian proposal to surrender control over its chemical weapons last week, suppressing risks of an immediate military action.
Bashar al-Assad’s government has accepted the Russian proposal to put its chemical weapons under international control, in a bid to turn the whole crisis to his advantage. Syria`s statement came very quickly after the proposal was made by Russian Foreign Minister Sergei Lavrov in what he said was an attempt to avoid a U.S.-led strike on Syria.
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