China: Syria raid harms global economy

Chinaâ„¢s Deputy Finance Minister Zhu Guangyao has warned that any military action against Syria would harm the global economy through causing a hike in oil prices.

Å“Military action would have a negative impact on the global economy, especially on the oil price – it will cause a hike in the oil price,” the Chinese minister told reporters on the sidelines of a Group of 20 Summit in the Russian city of St. Petersburg on Thursday.

Zhu reiterated China™s stance vis-à-vis Syria, calling for a political solution to the crisis in the country.

The comments came as Brent crude rose above $115 a barrel on Thursday as the US war rhetoric against Syria has intensified.

Brent crude rose 21 cents to $115.12 by 0224 GMT, after ending 77 cents lower, Reuters reported. US oil price also increased by 25 cents to $107.48.

The rise in prices comes as US President Barack Obamaâ„¢s efforts to win domestic and international backing for a military strike against Syria passed the first hurdle on Wednesday as the US Senate Committee on Foreign Relations approved a resolution that sets a maximum 90-day limit on any engagement in Syria, and bars the use of US troops on the ground.

The resolution requires the approval of the US Congress.

Experts say the increasing war rhetoric would further boost the demand outlook for oil. A new war in the Middle East, they warn, could even get regional oil producers dragged into the conflict.

Syria is not a big oil producer but it is located in an oil-rich region, and investors are worried that a US strike there may spread across the region, which pumps a third of the worldâ„¢s crude.

DB/HSN

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Republished from: Press TV