Clashes between pro and anti Mubarak supporters in Tahrir square, a rallying point for anti Government demonstrations against the Egyptian President, leave a further three people dead and do nothing to calm market fears that the situation will spiral out of control.

While Mubarak has said he will step down and not offer himself for re-election in September, that will not appease the anti factions who want him out of power as soon as possible.

Disruption of oil flow through the Suez canal is one concern, that carries around 1.5% to 2% of world oil supplies but the spread of the political unrest to the Middle East in general is a far greater worry.

Oil prices will stay high as long as the Egyptian situation remains unresolved and the impact on inflation, already being felt here in the UK, is playing havoc with the Bank of England's 2% inflation target and those of many other economies around the world.