will the suez canal be secure? will trade continue to flow through there?deed we just heard a moment ago from yousef, our report on the ground, saying there's extra security measures being taken to secure the suez canal. are you confident that that's enough or has history shown that this can still be a sticking point? >> i would watch what happens in the coastal cities. demonstrations the past few months around the coastal cities which is particularly worrying. they did try to close down traffic in march. some tried to release speed boats and we've had a situation and port authorities had to close their offices but really shutting down the suez canal would require the military to do that and there's no signs that the military wants so much of the hard currenty. >> if the suez canal were shut down, and we're hoping that's not case, but if it were what price impact would thereby on the energy markets, on crude and also lng? >> particularly in crude i think you would see a run up on a fear premium. certainly you could divert the supplies around the cape of goo

but the suez canal is a one lane street. are passing lanes, but only go one direction at a time. one side is egypt proper, on the other is the sinai peninsula. so easy for two guys and a truck to drive near the suez canal, with a shoulder fired missile take out a ship. stuart: how about the rest of egy egypt? we've learned that the egyptians are going to get $8 billion to keep them going for a short period of time. they're getting it from gulf states. so that keeps them going at least. it's not total chaos. >> it buys them time. the previous-- and morsi, his first trip when he was elected a year ago he went to see iran, saudi arabia's archenemy. what happened? the money from saudi arabia dried up. they don't like -- and the top guys, all have close connections to saudi arabia. a general, an attach there. and the interim president represented the saudi arabian interests in egypt. if they could get with the relationship they need with saudi arabia to write big checks, they could feed the people and potentially restore order an

and personnel passing through the suez canal to india and other parts of the empire that in 1956, terribles being exerted on him, the president of egypt nationalized the canal within the u.n. attempted with very strong guidance to negotiate a sphaer outcome to the nationalization. but meanwhile, the british government and occupy the suez canal. he was in the middle east. he invented shughts diplomacy. mr. kissinger did not. he was in the middle east at the ask of the general assembly and security counsel to establish something resimilarbling, if not peace, then at least the armist, the willingness not shoot at each other that had been put there some years earlier. and meanwhile, even while he was out there, the three power were conspiring to overturn him and occupy the suez canal in a most reckless way. so this was the origin of peace keeping forces. the notion that a u.n. peace keeping force staffed by many nations could intervene between the combatant in this case, and keep the peace was reestablished the peace grew out of this moment in his career. the author of the idea of peace keepin

now i think certainly commercial interests will be looking to sue is because it's of course the suez canal which is of. crucial importance critical of the world trade and there are all these other reasons as to why. not just because the most populous nation in the arab world but nevertheless option many could see this is a transitional process because the military have actually said today that they want to oversee new presidential elections so is there not for an element of democracy here they're responding to what a huge amount of people there in egypt do want isn't that the right thing to allow some sort of democratic process but that has to be that transitional period with the military in control. i think most analysts would say the hand of washington is the one to look at look i'm coming to you here from london we have a prime minister the majority of this country here in britain didn't vote for him in and there's no there's not even a procedure through which we can unseat david cameron because the military wouldn't seek to unseat him this is a point made by the muslim brotherhood beca

concerns that the ongoing violence could disrupt shipping through the suez canal. >> for americans at home saying why should we be interested. 5% of the world's oil every single day goes through the suez canal. about 8% of the world trade. if this spills over and they lose control of egypt, it will have real economic impacts for us at home. >> reporter: the suez canal is wider and much deeper than the panama canal so it can be used by larger vessels allowing shippers to save money. >>> ktvu's alex sadvidge tell us a woman is dead after being hit by a suspected drunk driver. >> reporter: the violent high speed collision happened at 2:30 this morning. >> it was so loud and couldn't imagine what had happened. >> reporter: the sound killed clyde harris. >> reporter: my wife and i both jumped up, took a look out and oh my god, just look at this. >> reporter: they saw this black compact car with its front end crushed. harris knew it was bad. >> it's sad to see such tragedy like that. >> reporter: the woman riding in this car was killed. the coroner identified her at lomia samoino. the man s

we're talking about a potential civiwar in the country that sits atop the suez canal which isesponsible transit and six -- 60% of the world's transport and oil on tankers. the fear is some sort of disruption to the flow. i have to add that you have to wonder why given the amount of oil sitting here in north america, why we are dragging our feet on keystone because as you referenced we are sitting on a surplus of oil. the problem is we have the oil but we need to get to where it needs to be, the refineries. this is theear that we are pressing in right now. now, this price has been building up for the past two weeks because what we have seen now with wall street, investors coming into the market, there are now starting to exit their large positions in natural-gas and are moving into oil. now you take a tremendous amount of investment flow of money coming into the market. throw a big geopolitical headline like potentially disrupting the flow of a significant amount of oil and you have template for a significant rise in price. where we have been the last couple of years. dennis: this is all

dennis: it seems to me that the suez canal, is something did go wrong, a bunch of oil leading countriesips and military guys and say, we are keeping we will let this goes down. >> well, we do have a history to fall back on. two years ago we had the civil war in libya. right around this time of the year, a little earlier, the market lost over a million barrels a day, is significant amount of very high quality oil. and then that we saw oil prices rise for about $90 per barrel to 115, $115 per barrel. if you do have a civil war regardless of what the military can do, you will see a disruption, and this is what the market is. it is important to keep in mind what markets are, driven by fear and greed. right now you take the greed, the wall street money piling add to that the fear, the destruction of a significant amount of oil. and now you have the tables set for the rise in price. it has been significant. if we see a quick resolution to the situation in egypt and tempers flared down you will see oil prices fall a lot faster and a lot steeper than we arrived. so right now we are 102, 103, if

there really are no net exports, but really we're looking at the transportation issues for the suez canalne and whether or not there's any disruption there. that could be a very serious situation for the oil industry. >> thank you very much, sharon. >> joining us on the cnbc news line, what do you think is the most likely scenario, and can it be peaceful at this stage as we get down to the wednesday deadline? >> it's difficult to tell at this point. it could go either way. one can't completely rule out the possibility of a compromise deal, albeit, you know, it's looking very difficult, but i -- you know, it's -- it's a situation where both sides understand that, you know, they have their forces mobilized on the street, the muslim brotherhood and their allies came out with their troops so they are trying to pressure the muslim brotherhood and president morsi know they can't hold on to power so what they are doing is they are enhancing their bargaining power on the negotiating table, so let's see how long that takes. the 48-hour deadly was a bit too short for this kind of a compromise deal.

she was talking with the suez canal. e any disruption in the suez, but, still no, one issing to fight the momentum on this trade, and they are looking to ride these prices higher. scott, back to you. >> jackie, thanks so much. jackie d'angelis with a read on crude. mandy? >> didn't we just have a debate asking if samsung was an apple killer. last quarter doesn't look like it. a big disappointment after a slowdown in smartphone growth. >> every now and then we get a report that changes the way people think about a markets happened to apple late last year where we got a narrative about apple's high-end market drying up. might be getting it again. samsung says to expect an operating profit around $3.2 billion in q2 in 50 billion in sales. the culprit here, sales aren't growing as quickly as many hoped for samsung's galaxy s-4. don't get me wrong, it's selling amazingly well. rumor is, 20 million units have moved in two months and samsung's overall numbers of operating profit is 47% higher than a year ago. revenue, nearly 20%

that is the other alternative to the suez canal. are at risk and worst-case scenario happens, a war, a pipeline explosion, shutdown of the canal, even for a short period of time could have a major impact. will that happen? we don't know. but you have a potential coup and uncertainty, the markets would not do their job if they didn't raise the price. ashley: that is good point. phil flynn, at cme. thank you very much. we're getting a separate headline, a bank managing director has resigned. we'll keep an eye on that story. lori: a story amid the vatican bank. we want to piv have the to talk about other stories of the day. when you thought we were one step closer to landmark immigration bill. the landmark immigration bill passed in the senate last week will likely fail in the house where the lawmakers are divided on amnesty. could this force congress to compromise? joining us greg valliere, chief strategist at potomac research. dead on arrival was the quote from john boehner about the immigration legislation in the house. seems as if

you say we have to watch two things; sabia and the suez canal -- saudi arabia and the suez canal. >>s all about the money. the egyptian economy in the last year has cratered. it is, there's no growth, there's negative growth. half of the egyptian population is only eating because it's getting subsidized bread from the egyptian government. they're running out of money, they don't have money to buy the imported wheat they need. will they get a bailout? our assistance to them is not the kind of money they need. they need rich, arab oil money coming from saudi arabia, and the saudis with not -- knot knot not to the muslim brotherhood. >> they also didn't like that morsi's first official trip wasn't to them, it was to iran. jenna: that adds stability potentially to the situation. quickly here, we only have about 0 seconds, the suez canal, what's going on there? >> al-qaeda has set up shop in the sinai peninsula. will the angry muslim brotherhood, are the groups that are more violent, will they hook up with the al-qaeda groups in the signee peninsula and use that as a -- sinai peninsula an

the suez canal important for commerce and relationship with israel. i don't think in any one of these cases we'll find a need for u.s. forces to be there. but the u.s. is prepared to do what they need to around the world and hope no requirements for u.s. troops. we'll watch the relationship with israel and israel security and the suez canal closely. >> colonel cowan, great analysis and great to see you. >> likewise, jamie. >> we do hope the violence doesn't happen and things stay under control. a little context and more on egypt's leader. monsor was born in ca iro in 1945. and he was appointed deputy president of the constitutional court in 1992. and heading that constitutional court in 2012 and scrapped the political ice lugz law and prohibited members of the old rejoem from contesting elections and now you know a little more about him. >> the arrest of america's most infamous spy doing little to curve edward snowden's independent day in the 4th of july weekend. and while russia allowed snowden to stay on there as long as he stops leaking u.s. secret

soap for egyptians it is more complicated but for investors we only have to watch the suez canal.d a big chunk is coming for the united states. >> yes but they're becoming closer to the gulf nations that are replacing the united states or becoming as important in terms of support. egypt is not insignificant but not as critical as it used to be as we are more energy efficient and independent and focus toward asia. cheryl: why it is so crucial is because of the strategic location to israel also i iran and iraq. if you look at a map overall , israel is right there. that is a problem and egypt is our ally and has always shielded the israelis putting $10 billion to work but now to companies need to think twice? >> the economy in defense institutions of israel are insulated from what is going on. there is no critical threat from syria, egypt, and they have internal problems but the israeli economy will continue to prosper. cheryl: may were there before genocide began. do you believe the instability will spread over to you jordan? >> all the risks are to the downside. it will be a protra

the suez canal has also taken additional security measures and the situation on edge at this point.tivities are going on in tahrir square. that's part of the story and tensions so high. violence overnight. the space to look out for and for now it's back to you, maria. >> thanks, yousef. we'll continue to following and take you back to as the news develops. what is the next step now for egypt? what imact is this all having on oil prices? jock me is john alterman of the center for strategic and international studies and cnbc contributor john kilduff, good to see you both. what happens now in egypt as you see it oil obviously above $100 a barrel. does it stay there? what's your expectation? >> which john are you talking to? >> sorry about that. >> maria, yes, i -- we're in the process of seeing right now, of course, is that the military i expect will put this down. the pro-morsi forces will have their day over the weekend, but as sharon expertly pointed out vulnerability is the suez canal. i expect the military will calm that early next week and that will send oil prices back down to $

it is vital they keep the suez canal open at this point.hat is definitely going to be a focus and priority. you have the news out that you highlighted on bp bringing some of the nonessential workers out of the region. if this violence escalates and you see that happen, the fear trade will continue to push the premium higher. >> all right. jackie, thank you. jackie deangelis, who, by the way, spent more than a year in the middle east cover that area for cnbc and was there at the beginning of the arab spring. when it got under way. so she's got some insights into what goes on there. >>> let's get an update on this morning's trading interrupt here at the new york stock exchange. ayman? >> reporter: we brought you this information earlier about a technical glitch at nyse arca that prevented quotes from reaching the consolidated tape earlier. we've gotten official confirmation from nyse arca, they september to their members in the past hour or so, they say, "please be advised between 7:29 a.m. and 8:41 a.m., nyse arca equities experienced a spor

of oil players, fears are as they sort this out, suez canal is vulnerable to shut downs or terrorist attacks or sift war strikes that you know stifle oil supply from that region. and that leads to what you remember -- do you think it could happen? >> it cannot happen -- it should not happen if there is a firm alternative. if the radical -- >> do you s one? >> i believe it is possible. to create out of the combination of the moderate elements in cairo and the military, a government that can maintain itself. and any rate it would be the height of toll i for u folly fo3 these people to bring back the name a group that we know is dedicated -- >> i understand, but what if people elect group like that whether it is muslim brotherhood, what they did in iran after the revolution, that we might not like what they elected. they were groups not friendly to us. >> one of the greatest assets of american foreign policy, we act -- in everyone throw of the shaw, it would beore democratic, and far more peaceful if the revolution in 79. we must not make that mistake again. of course, if the whole situ

one is the suez canal. the other is the suez mediterranean pipeline.f course, watching what is happening here in the u.s. because that is having an impact on the u.s. oil price as well, and we did get the report that we brought to you live from the energy department earlier today showing a big decline in crude supplies. the biggest we've seen all year and in total we've seen about 15 million barrel drop in crude and petroleum supplies overall just in the past week. so there's a lot of concern that we're going to see tighter supplies going into the third quarter here in the third quarter and that that could also lead to higher oil prices. we're seeing a great deal of volume of wti and in june it surpass wad we're seeing in the brent volume. so while we look at the two global bench marx for crude oil we are seeing them both reacting to the geopolitical events in egypt and traders are watching elsewhere in the middle east as well. back to you. >> sharon, thank you for that. you can see from the bottom of your screen, we're trying to be as judicious with t

his 90-year-old father, sister and brother lived in a suez canal town and have been protesting. >> we are not working for egyptians. -- theworking for them muslim brotherhood as a group. >> a steady stream of customers came through, all races and religions, asking what the latest was, and if his family was ok. >> they are fearing individual twohs inside of the home -- deaths inside of the home. there is always fear. where they are living right now, the brotherhood has shut them off. >> while being interviewed, he took skype calls from egypt and explained the majority turned to the military because it was clear mohamed morsi was giving too much -- given to much trouble -- power. >> there were people in the street peacefully saying we do not want this government. the army had no other option but to say you need to go. >> the biggest question for egypt and here and abroad is when the uncertainty will end. >> another violent night in baltimore. one man is dead, another in stable condition after a double shooting on the 1800 block of east landing. so far, police have no suspects or a motiv

on the other hand, the suez canal stayed open in all that happened before because the suez canal is biguns it. fears may be over played. dennis: and the investor looking at that, if they wanted to get in on this, they should buy now or sell? what do you do if the fears are over played? >> coming from the summer, there's softness in crude. right nor, crew is resilient in the face of gold. it's the ratio of gold, the crude went from 20 # x to 15x if you price the way the markets do, but, look, it's changed here. it's out gunned, demand issnot keeping up. the market looks softer. we'll see oil go down into the eight handles by the end of the year, and 89 for calendar year 2014. dennis: woah, oil, towards a hundred dollars on fears and over 90, you see it down below 90 into an eight handle on that? doesn't that basically have a bonus for the growth of a economies that buy their oil from elsewhere? isn't that a bonus for the u.s. economy? >> it's going to be a bonus for the u.s. economy for a while longer because we're net importers, but as we pry's, we're number three oil producing in the w

last night it was all about egypt and whether demonstrations we see in the street would lead to a suez canalsure. that's what the market is worried about which impacts supplies from the canal over to europe. we would have to reroute the tankers but by and large, i think the market is recognize that go egypt is really a small player in the oil market. they sell a little crude, buy a little product and the big worry is should this unrest spread to other parts of the middle east. liz: what do you think is going to happen there? >> well, it's all about the economy in egypt and the suez canal plays a big part of the economy there. at the end of the day, i don't think there's any supply disruption caused by ee begin. i think we're going to go back after this is settled and look at where the oil market is, supply and demand, and supplies are in rather good shape. liz: they sure are. are we at multi year highs? very close to it, correct? >> we're very close to all-time highs on crude oil and actually for this time of year on gasoline inventories, they're near the highest level they've been since 199

you mentioned the suez canal. that's the biggest factor in this situation with egypt.rough the suez canal. if there is some disruption there of the suez canal, those shipments would have to go around the southern tip of africa, much longer route, and that could disturb about 4 million barrels per day of opec oil which flows through the suez canal and about 8% of the global sea born trade that goes through that canal. so it's a very, very key port of entry right there, and if there's anything that disturbs that, that is what traders are very concerned with. if you look at where oil prices are right now, we're looking at u.s. oil price that is are up about $2 since friday. brent crude up only about $1.50 since friday. not as much of a gain. some traders say while they're looking at the differential between these two global benchmarks, one of the factors that may be causing that differential to come in is this concern we could see a disruption of middle east shipments going to the european region, and so that is something that they're watching very carefully. they're also

theing oil flowing through suez canal. the washington goal now to do anything they feel could make the situation more volatile. reportstan's official into the raid that killed osama bin laden. their investigative unit has obtained a copy of the commission findings. >> no state institution in pakistan was scared. the military and political leadership displayed a degree of incompetence and irresponsibility that was truly breathtaking and indeed culpable. politicians appeared uninformed and lazy. the head of military intelligence told the commission our whole system had become dysfunctional. >> is that not remarkable? >> it is. that is an absence of institutions. we're talking about a country where there are hardly any of vibrant institutional structures. >> the national malaise begins allowable of local officials. they have failed to apply building regulations to the bin laden compound and had not pursued the owners for property tax. the police were ineffective and incompetent. according to the commander, the lead criminal i

the iea estimating that 40% of trade flows through the suez canal. hat 20% of oil that travels through the streets and it puts it into perspective for you. how likely is a shutdown of that canal? not likely. oh, peck's declining forecast supporting the view that global demand is diminishing. and their reserve capacity is in good shape, too. it hasn't been this tight since jan of 2011 which creates there's less interest in brent, more demand for wti. the risk of a suez disruption is slim and there are improved buffers which appear to lirmt the upside for crude. the markets are not always rational and they don't want to be short going into this holiday. >> let's go deeper into the commodities theme here. interesting and opposeding calls. jpmorgan outlining ten ways to get out weight. this caught both of your attention in terms of the jpmorgan call? >> i saw it last night when people were not talking about commodities. first of all, he's a china bear, doesn't believe in the super cycle. he's saying we've weathered seasonal effects that we are through. it

the suez canal is in the middle of egypt, and the suez canal is threatened by this chaos in the politicaloil goes through the suez canal. so up goes the price when the suez canal is threatened. al qaeda camps have been located in the desert near the suez canal, so now we have the price of oil at $107 a barrel, and gasoline today is up nearly 2 cents a gallon at $3.52. look at that for the price of oil. straight up. the price of gas is $3.52 today and going up a lot more in the very near future. >>steve: what i learned at the stuart varney school of economics is the fact that the reason it goes up is because we have to get a lot gas -- of gas over there. if we have it here and we extract it out the ground, the price would be lower. >> why don't we aggressively go after our own oil? >>steve: you know that. the environmentalists. >> that is precisely the reason why. the environmentalists do not want us to take oil from canada. it is supposedly heavy oil and is bad for climate change. they don't want that. so they stopped the pipeline. and the president who is under pressure on a variety of f

what is happening in egypt will lead to concerns of the closures of the suez canal and unrest spreading. that is why geopolitics is still factored into the oil price. just because we have our growth doesn't mean we are insulated from the rest of the world. >> you said moments ago, joe, you think prices will ultimately come down? >> yes. the speculators have overreacted to the take-away capacity from shipping it to the gulf coast. we are exporting 4 million barrels a day in products. and we are -- and the eia is overstating domestic demand. this year, we will be lucky nationwide to sell 120 billion gallons, whereas, 7 years ago, it was almost 150 billion gallons. so you will see oil prices coming down toward the marginal costs of production, which is closer to $60 than $110. and then i think if we fix the refineries issues and the transportation bottlenecks and glitches in the renewable standards, we will see the price of products fall down closer to 2.29, 2.30. >> you do not think oil will go below $100 a barrel, right? >> no. >> where is wall street on oil and gas prices, halima? >> ou

concerns about the suez canal and all the oil which passes through the suez canal which runs right through egypt. cheryl: we'll continue to follow breaking news out of egypt and monitor live pictures. we also have someone and fascinating to talk to. he is known for predict the japan's lost decade, recession of 1990 and new stock market crash. he warns a new crisis is not far ahead. where does he see trouble? harry dent of dent research is here. david: harry dent, i can't tell how many people come back when he has been on and say, boy, that was that a good interview. >>> former budget director david stockman says, today's spike in interest rates, that is just the beginning of what he has been warning about in a long time a phase called cold turkey as we wane ourselves off the monetary heroin as he calls it given bit fed. what will happen next? will we continue to see 8% rises in interest rates the next couple weeks? david stockman is here to tell us. ♪ [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghos

about 4.5% of the world's oil supply goes through the suez canal right there by egypt. we also have to look at the internal economy. it dipped during the one year under the control of the muslim brotherhood. recently it had an uptick in terms of its stock market there in egypt. when we look at the external/internal balance of the economy, how is it that we can, the united states and the west, put forth our inprints on what's happening there or is it hands off? >> look, i think egyptians know and certainly the egyptian business community knows that success in egypt is going to be driven by the private sector and it's going to be driven by trade with the outside world. egypt's not going to prosper on the back of revenues for suez canal transit or even natural gas. they need to generate a strong business kmun nitd at this and they need good ties to the west to do that. there's some liberalization and regulatory reform that needs to take place, but mostly they need a government that can work with transparency and they need reliable courts of law where contracts can be enfor

violence following the coup and removal of eyptian president mohammad morsi will spill over to the suez canal and sumed pipeline, which are critical to the flow of oil from the middle east to western markets. also driving up prices at the pump - demand from american motorists. "we are seeing one of the biggest moves in the energy market consecutively than we have seen in years. even if we see a higher price for crude, it isn't necessarily going to impact to the degree the price at the pump as it did a couple years ago." "but the fact is we are still paying at or near record gas prices." the current national average for a gallon of unleaded gasoline is $3.50, up 3 cents from a week ago. capitol hill remains divided on immigration reform. lawmakers await a proposal on the issue from house republicans, who have said they will not pass the same legislation that passed the senate last week. members of the bipartisian house "group of 7" met yesterday in a private meeting. meanwhile, former president george w. bush is showing support for changes to the current system, calling on lawmakers to find a

suez canal, there will be no issues here. every country that's dependent on food going through the suez will not let what's happening in egypt disrupt deliveries. >> all right. coming up next after a short break, we're going to take a look at zynga which has been jumping. the traders are going to debate whether that can continue. that and much more when we come back. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." and you wouldn't have it any other way.e. but your erectile dysfunction - you know, that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more conf

egypt is not an oil producer, but controls the suez canal.the flow of commerce through the suez canal, oil is up $100 a barrel for the first time in over a year. president obama spoke to embattled egyptian president morsi by phone on monday morning. the white house says president obama, quote, underscored that the current crisis can only be resolved through a political process. he also pressed morsi and the government of egypt to protect u.s. diplomatic personnel and facilities as the situation there unfolds. back to you all in new york. >> brian: that is going to be the major story today, tomorrow, friday. he's not moving and the military is not supporting. time is ticking. so this is going to be unbelievable. >> gretchen: thanks very much. a family member of aaron hernandez just found dead. singleton was married to aaron's cousin. singleton was just killed in a car accident. the car he was driving was registered to hernandez' uncle. police searched the uncle's home and towed away his suv. police believe it's the same suv involved in a doubl

. >> what tensions, because the suez canal, the sixth fleet, no one is blocking. >> that's the fear, that the suez canal could have some of its energy supplies blocked. >> if it did the united states navy would be there in six seconds reopening it. >> keeping an eye on storks up by 28 points on the dow. we were down by 25 just before 2:00 p.m. before the release of the latest fed minutes from the june meetings. we've had a nice turnaround here. let's certainly hope we can keep on moving to the upside. also, attention, bargain shoppers. we have a new list of ten stocks under ten bucks. >> and this one right here did something she said she'd never stoop so low to doing, went downtown out of the confines of the upper west side and she was battling the masses to buy a cronut. >> oh, it was messy, it was messy. ♪ that's me... i made you something. ♪ i made you something, too. ♪ see you next summer. ♪ [ male announcer ] get exceptional values on the highest quality cars at the summer of audi sales event. ♪ hooking up the country whelping business run ♪ ♪ trains! they haul everything, safel

now, energy traders are watching it all through the prism of the suez canal, a money maker and point national pride. the canal is 120 miles long as you see there, sort of the mouth of it there on the mediterranean moving down to the red sea. it connects that -- those two bodies of water. if it were to be disrupted or its operation were to come into question, that would certainly impact the 4 million barrels of oil that flow through it each day. not huge in terms of the global supply but significant enough, nonetheless, to affect the price. the suez carries 6% of the world's natural gas supply. if it were to be shut down, all that traffic would have to go all the way around the southern horn of africa via vessels to move towards the atlantic ocean, and estimates say that about 7.5% of the cargo carried by ship goes through the canal, so it is a major sort of economic choke point in that part of the world with many of the natural gas, sue, and oil supplies that move into the atlantic moving through that body of water. >> absolutely. we're going to talk more about that and the situation

however, you have the suez canal their -- there. so everything goes through that country. that is why we see the levels we have not seen since may of last year. i think technically oil my basically -- might stop here at these levels. it always does. in terms of other, oddities like precious metals, gold -- gold was up 1% today after being beaten down considerably last week. we do have some life in terms of precious metals, gold and silver. we have precious metals going up when there is uncertainty in the world. >> always a pleasure talking to you. thanks so much for joining us. coming up, the world's biggest pop stars and recording companies turn to technologies to beef up profits. and china will become the world's biggest user of mechanized workers in a few years. how that could transform work first priorities. we will take a look at how wall street ended a shortened trading session. here are the numbers. sports scene -- the heart and soul of sport. >> in a business world with information overload, we strip away the complexity and confusion to give you the essence of fina

huge supplier of oil, although it is big one of the biggest no non-opec suppliers but it has the suez canaltwo, as john mentioned, our lack of energy policy -- not so much a lack of energy policy, it's the lack we want to do the things that areo obvious like the pipeline, like drillg anwar, thing that' have proven to have minimal if no environmental impact that could increase our oil supply, cheapest form of energy. yet we want to tie our own hands. that's what's causing these prices to jump up. because the world and he in the u.s., we don't see any move toward getting those lower prices by doing the smart things. >> tracy, oil and gas prices going up. do you think that's going to hurt the economy and are they going to continue surging? >> yeah. brendayou and i both know wages aren'tgoing up so gas prices even if they inch up a little bit, if we don't see a wage ncrease, that's taking a bigger chunk of change out of my pocket. i disagree it's typical supply and demand. global demand is going to continue way more than supply. if we're not going to do the right thing in the united states. the

but without that and without egyptian violence breaking out into the suez canal and elsewhere, i think we're pretty close to a top and i think we'll see much lower prices in the last 100 days of the year. >> i tell you, i'm so glad to turn my ac off. if it's not put in the gas tank, it will be paying my electric bill this summer. thanks. nice to see you. >>> here are the other stories that matter to your money this week. it's not all about the gas tank. give me 60 seconds on the clock. it's money time. >>> good news for apple. it sold 32 million iphones last quarter. no one saw that coming. the bad news, profits sank and investors are still waiting for apple's next big thing. >>> parents are forking over less cash for their students' college. instead they rely more on scholarships and they're bunking with mom and dad. one who doesn't need a scholarship? william and kate's baby boy. it is estimated it will cost a million dollars. >>> taco bell won't be selling meals with toys anymore. taco bell is the first national chain to dump the kiddie menu. >>> the cash-strapped post office pushin

also, oil traders say unrest in egypt has driven up the cost of insuring tankers through the suez canal. "it's the same every year. we're resigned to it. you have to drive, you have to pay, and every summer, the price goes up." "at this point, i just expect it to go up and down for no reason." barring any severe storms in the gulf, analysts say they expect production to pick up and for prices to begin falling in about three weeks. in a never-ending quest to cut costs, united airlines will now adjust the wings on its fleet of aircraft. the company will install angled tips on jet wings to improve aerodynamics. the airline expects to save around $200 million per year on fuel. in today's cover story, the line between work and vacation has now become blurred for most working americans. part of the blame lies with technology, which has made it too easy to be tethered to our job. for many, the rest of it is the sheer workload or fear of being left out of the loop. just as smart phones, emails and papers from the office follow us home from work, they also follow us on vacation. "i think in this

: there's also concern the unrest in egypt could spread and disrupt the flow of oil through the suez canaland there have been production hiccups at a few u.s. refineries, helping to push prices even higher. add it all up, an extra 14 cents per gallon in a week, 22 cents in a year and 800-mile round trip in the family van from chicago to minneapolis will likely cost about $178 in fuel. looking for the cheapest gas? gasbuddy.com has that. you type in your location and the stations with the lowest gas pop up. here in washington, it ranges from 3.59 a gallon to 4.79. some consumer advocates are skeptical with the oil industry's explanation that prices are driven by the markets and not manipulated seasonally by the oil companies themselves. meanwhile, back in los angeles -- >> if the price of gas keeps going up, guys like me are eventually going to go out of business. >> reporter: ice cream man is thinking of parking in a fix location, giving up on chasing oil prices. some analysts we talked to say we may see another ten-cent increase for the gas pump but may be the top for the summer. the big

egypt controls the suez canal, a cruel route for transporting oil. if that country were to descend into a civil war we could potentially see prices to where they peeked in 2008 at $4.11 a gallon. that would mean $40 more for most americans to spend on gas. the department of energy says prices will remain higher for the rest of the summer averaging $3.63. >> thanks for the head's up. >>> still ahead on "world news." after those three young women in cleveland spoke out, we looked at what we have learned about recovery, lessons for everybody on surviving and thriving. that's next. >>> later, are you ready for a surprise, talk about made in america, home grown caviar taking on the world. stay tuned. you won't believe where we found it. years ago, my doctor told me to take a centrum silver multivitamin every day. i told him, sure. can't hurt, right? and now today, i see this in the news. once again, centrum silver was chosen by researchers for another landmark study. this time looking at eye health. my doctor! he knows his stuff. [ male announcer ] centru

it sits on top of the suez canal which is how our naval forces get in and out of the persian gulf and the world's oil gets to global markets. the $1.6 billion the u.s. gives gives every year in aid, most of it military aid, is second only to what we give israel. with the region already in crises, with syria's deadly civil war, the nuclear threat from iran and a still unstable libya and iraq, what happens next in egypt is of great concern. >> this coup is opposed violently by some factions, particularly perhaps the muslim brotherhood. that could lead egypt down the road of civil violence which would be terrible. >> joining us is martha raddatz and christiane amanpour. despite all that money we give to egypt, we're really on the side lines here. we have little or no influence over president morsi or the military and the opposition. >> the military to military relationship between the u.s. and egypt is very strong. they train officers here, pilots. in fact, there's an abrams paint factory in egypt that is run jointly. the u.s. seems to believe they are not take advantage of the power vac

some two million barrels of oil pass through the suez canal every day. and the violence there has driven up prices 7% this week, which could soon be felt at the pump. >> a key american allee lie and soon to be felt at the pump as you point out. alex, thank you. >>> meantime back here at home tonight and to what could a pivotal day in the trial of neighborhood watchman george zimmerman, accused of murdering trayvon martin. martin's mother taking the stand, saying the voice screaming for help was her son. the prosecution resting its case and then right afterwards, the defense demanding an acquittal. what did the judge do? abc's matt gutman is in sanford, florida, at the zimmerman trial again for us tonight. >> reporter: it was the emotional crescendo of two weeks of testimony. >> so you think he's yelling help? >> yes. >> reporter: two mothers on the stand. each claiming to hear their own son in these screams. the grieving mother of trayvon martin. >> who do you recognize that to be? >> trayvon benjamin martin. >> reporter: and george zimmerman's mother? >

those 2 million barrels passing through egypt's suez canal every day. already the price of oil has jumped 7% in the past week. that could soon be felt at the pump. as the death toll rose today, morsi's group, the muslim brotherhood, told its members to rise up against the army. tonight new presidential elections were announced six months from now, but the question is can egypt go that long without slipping into chaos. alex marquardt. abc news, cairo. >>> now back here at home after this holiday, talk about swept away. this weekend nearly 200 people were caught in rip current which pull swimmers away from the shore. in fact, they are deadlier than lightening, hurricanes and tornados combined. meteorologist ginger zee shows us what happens and what you should do. >> reporter: at least two deaths and 200 rescued this weekend. on an ma maria island, rescuers comfort a family who lost a 14-year-old son who drowned when he was caught in a rip current. they got farther than they wanted to see him out there. >> reporter: i suited up and hit the water. i soon di

economic lifeline i mean you're never going to see any of the major world powers look away from the suez canal and pretend that they aren't affected by what happens in egypt but just . getting back to my my previous point i mean. saudi arabia and u.a.e. and god are in bahrain and oman were all able to haul out their checkbook and deliver a little bit of what people were asking for ramped up the social programs they were able to decrease unemployment's social spending in saudi arabia is grand i think you are also. so to unleash jihad it's into syria as well ok documented well yeah that's i mean. obviously obviously that's. on lease jihad us into syria send troops across the causeway to bahrain i mean obviously they're foreign and domestic policies are are rather different not so but never when there's a border to be crossed charlie do you want to weigh in there and let's let's go let's let's remember the world is not a perfect place and the art of foreign policy is not a perfect place and there's no necessary consistency between how you deal with one nation state versus how you deal with anothe