Whoa whoa whoa, chill out guys.
For starters, the fears about the oil supply are entirely unfounded. Only 3% of the world's oil flows through the Suez anyway, so even if they shut it down it's a drop in the bucket. And with the huge surplus of shipping vessels sitting in ports now, there would be only a negligible cost increase to ship that 3% all the way around the cape. The canal accounts for about 5% of Egypt's GDP, so there is no way in hell it is going to get shut down. But even if it does get shut down for some time, it's only the tv stations that are making such a big deal about it. Relax, it's peanuts.
And it is also obvious that the stock market doesn't give two sh!ts about the Egypt situation, which is actually a very good sign for our own economy. It might mean that we have finally gotten away from selling the entire market on the slightest wiff of bad news.
There are many fears about this "contagion" of civilian insurgency spreading to other countries in the area, and that it might "bring the world economy to it's knees", as I actually heard one cheeseball pundit put it. The entire North Africa area accounts for less than 5% of world GDP, so where the hell do these journalists get off making everyone terrified that it's the end of the world?
Also, I would only see a greater risk for the insurgency to spread if it were of a religious nature. But it isn't, Egypt is largely a non-Shi'ite country so we don't have the trouble there that we have in other Islamic countries. If the UN or Western forces otherwise have to step in and put the country back in order, we wouldn't have another religious war on our hands, as Egypt has been a good ally to the West.
Now if a Shi'ite regime asserts itself into their government, we might have a small problem. But remember, the Suez is only a little straw, not the crude oil floodgate to the West that it is being made out to be.
The problems in Egypt are largely a result of escalating food inflation and a permanently unemployed underclass. The food inflation can be blamed on the growth of the BRIC nations and, to an extent, Bernanke dumping American dollars all over the globe.
There's just no good answer for the trouble in Egypt: it's a bunch of people who are sick of being broke and unemployed, not an issue of religious fanaticism or idealogical strife.
Guys, look at the decade we are living in: trouble in the middle east, escalating energy costs, stagnant economy, it's the 1970s all over again. Hopefully we can get through this one without someone pulling a Jimmy Carter on interest rates and inflation...what I'm getting at is, everything happens in cycles, so don't get all swept up in this "end of the world" junk.