Oil prices rose to a nine-month high as Asian stocks took a beating and social unrest in Egypt led to uncertain global economic outlook.

Australian shares pared gains with the ASX 200 index down 1.8 per cent to 4,746 on a weakening Australian dollar, trading at approximately 91 U.S. cents by noon.

The sell-off in Asia and Australia ensued after President Mohammed Morsi of Egypt held on to his position despite calls for a resignation. The army had also threatened the president that it would consider the constitution null and void.

The crisis in Egypt spurred oil prices to $102/barrel for the first time in nearly a year.

Though Egypt does not produce oil, it does regulate the Suez Canal, an important gateway for oil to be transported between the Mediterranean and Red Sea.

Dickie Wong, Kingston Securities Ltd’s executive director of research in Hong Kong, told The Washington Post, “Crude oil prices rallied up, and now some airline shares are down quite significantly.”

Australia’s Qantas Airways shed 2.2 per cent on news of higher oil prices.

Oil futures in the U.S. sky-rocketed to a 14-month high on Tuesday, with domestic prices easing into the global market. Following a host of production issues, new sources of oil in North Dakota and Texas are realigning domestic oil with global oil prices.

At the same time, gold headed lower along with other metals. Gold scheduled for August delivery decreased one per cent to $12.30, settling at $1,243.40 an ounce, reported The Associated Press.