The price of oil rallied on Friday to a nine month high, while gold prices followed, after news the U.S. authorized sending its weapons to the rebels in Syria sparked worries about the Middle East’s rising tensions.
The escalating tensions throughout the region lifted the price of commodities as did data out of the U.S. that suggested the biggest economy in the world was on a path of moderate growth, which would boost the demand for raw materials.
Wall Street fell for the third time in the past four session and next week will shift its attention to the policy meeting of the Federal Reserve Bank for any signs the central bank in the U.S. plans to curb its monthly bond purchases program of $85 billion.
The majority of economists expect a scale back by the Fed in its bond purchases before the year ends.
Oil was 98 cents higher per barrel on Friday, to close at its highest settlement price since early April. Brent crude has traded between $99 and $105 a barrel over the last eight sessions and settled for the week 1.3% higher.
U.S. oil was up by $1.16 to settle at $97.85 a barrel on Friday. It touched its high of nine-months during trading of $98.25 before pulling back 35 cents. For the week, oil was up 1.9%.
The White House authorized the shipping of arms to the rebels battling government forces in Syria after President Obama said proof had been received that the government of President Bashar al-Assad used chemical weapons.
Although Syria is not one of the global oil suppliers, investors are now worried that the escalating war could lead to more unrest in the regions where oil is produced and where over one third of the oil in the world is produced.