The Dow Jones Industrial Average tumbled more than 200 points today, as concerns about unrest in Libya and other countries in the Middle East sent buyers to the sidelines. The Dow closed down 178 points, or 1.4%, to 12,212.79. It was the index's biggest point and percentage decline since mid-November.
Libya has been hit by massive protests, a follow-through from demonstrations in Tunisia and Egypt that forced out those countries' long-standing leaders. Protests are also taking place in Bahrain, Iran, Morocco and Yemen.
Libyan leader Moammar Gadhafi, who has been in power for 42 years, said he would remain in the country "until the end" and that he would fight to his “last drop of blood.” More than 200 people have been killed.
The unrest in Libya caused light, sweet crude oil to jump again today. Oil spiked $5.71, or 6.4% to close at $95.40 a barrel. Libya has the most oil reserves in Africa and is a member of the Organization of Petroleum Exporting Countries.
“Oil traders fear that a civil war would perhaps take Libyan oil out of play for years to come,” Phil Flynn, vice president at PGF Best, told MarketWatch.com.
Saudi oil minister Ali al-Naimi tried to calm fears about oil prices. Speaking at a news conference in Riyadh, Al-Naimi said that "OPEC is ready to meet any shortage in supply when it happens,” according to The New York Times. “There is concern and fear, but there is no shortage.”
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