Time Expires; Egyptian President Mohammed Morsi Under House Arrest - Al Hayat TV; Obama Warns Egyptian Military

Time is apparently up for Egyptian President Mohammed Morsi as Al Hayat TV Reports Morsi Under House Arrest.

Egyptian President Mohammed Morsi is reportedly under house arrest after the military ultimatum expired Wednesday, reports Al Hayat TV.

Morsi's spokesman denied the report, although word of the house arrest provoked cheers in Tahrir Square.

This comes as Egypt's military moved to tighten its control on key institutions before their afternoon ultimatum expired.

The military stationed officers in the newsroom of state television on the banks of the Nile River in central Cairo. Troops were deployed in news-production areas.

Under a plan leaked to state media, the military would install a new interim leadership, the Islamist-backed constitution suspended and the Islamist-dominated parliament dissolved.

Demonstrations turned violent overnight. Clashes between supporters and opponents of Egypt's president have left at least 39 people dead since the protests began Sunday.

Meanwhile, President Barack Obama is urging Morsi to address the people's grievances and the White House is also warning Egypt's military that a coup could jeopardize relations with the United States.

The tension in Egypt is having an impact on global markets - especially the oil markets. Oil is now trading above $100 a barrel for the first time in close to a year. Egypt's Suez Canal is a major transit route for crude shipments from the Persian Gulf.

Is Obama confused? Does he like the Muslim Brotherhood? Or is Obama simply playing both sides of the setup?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com