Egypt in turmoil...But Mubarak remains defiant

The ongoing political turmoil in Egypt worsened with no end to the nationwide public protests against the three-decade-old autocratic regime of President Hosni Mubarak. Crude oil remained elevated and was headed for its second weekly gain amid concerns that the civil unrest in Egypt could spread to other parts of the Middle East and could adversely affect shipments through the region. Oil futures increased 4.3% on Jan. 28, the most since Sept. 2009, following clashes between police and protesters. Global stocks plunged that day as rising tension in Egypt overshadowed US data showing GDP accelerating in the fourth quarter from the previous quarter.



Tens of thousands of protesters defied a curfew and gathered in central Cairo even as opposition groups rallied around Nobel peace laureate Mohamed ElBaradei in demanding the ouster of Mubarak. Protesters flooded into public squares in Cairo, Alexandria and other major cities, notwithstanding strong presence of security officials, and as the US called for a peaceful, orderly transition to democracy. Egypt's opposition groups, including the powerful Muslim Brotherhood, put aside political differences to rally behind ElBaradei.

Meanwhile, Mubarak with his newly appointed vice president, former intelligence chief Omar Suleiman, met Egypt's top army commanders. In a bid to quell the uprising, he directed the new Prime Minister to push forward with reforms and anti-corruption efforts. Mubarak said that the new Prime Minister Ahmed Shafik's priority is to tame unemployment and create jobs. Shafik, former aviation minister, was named Egypt's new Prime Minister on Saturday after the previous government headed by Ahmed Nazif was sacked by Mubarak. The country's intelligence chief Omar Suleiman was sworn in as vice president on the same day.

The protests have continued for more than a week now, prompting foreign governments to issue advisories to their citizens in Egypt to leave the country and avoid traveling to the region. The US stepped up the pressure on one of its key Middle East allies, with president Barack Obama voicing support for an "orderly transition" to democracy in Egypt. France, Germany, Britain, Italy and Spain issued a joint statement denouncing attacks against foreign journalists in Egypt, while the US State Department condemned what it called a "concerted campaign to intimidate" reporters by the armed forces backing Mubarak.

The Obama administration said it was in talks with top Egyptian officials about the possibility of Mubarak immediately resigning, and an interim government forming before free and fair elections this year. Meanwhile, organizers of anti-government demonstrations called on thousands to gather at Cairo's main square for a massive rally to force the immediate ouster of Mubrak, who said he would like to step down but feared ensuing chaos. Dozens of people have died in the violence over the past few days, but there was no sign of a quick end to the mass protests.