After Russia sends troops into Ukraine, oil prices soar beyond $100.
NewsReport gathered that following the Russian President Vladimir Putin started a “special military operation” in Ukraine’s eastern Donbas region, oil prices have soared beyond $100 (£74) per barrel.
The worldwide benchmark Brent crude futures are at their highest levels in more than seven years.
Prices rose earlier this week before falling as a result of economic penalties and efforts to shut down a Russian gas pipeline.
After Saudi Arabia, Russia is the world’s second-largest crude oil exporter.
It is also the world’s greatest exporter of natural gas.
Tina Teng, a market analyst at CMC Markets, said, “We might see prices sustaining the momentum.”
“Investors are concerned about an even tighter supply, caused by the US sanctions on Russia to target the key supply source, the Nord Stream 2 gas pipeline,” she told the BBC.
Nord Stream 2 is a 1,200km pipeline under the Baltic Sea, which will take gas from the Russian coast near St Petersburg to Lubmin in Germany.
The pipeline does not yet have an operating license – and Germany has now put this on hold.
It took the step after Russia formally recognized two breakaway regions in eastern Ukraine, and sent troops there.
The US, UK, and some of their allies have also imposed a series of sanctions on Russia in response to Mr. Putin’s actions against Ukraine.
The UK has frozen the assets of five banks and three Russian billionaires, who have also been hit with travel bans.
“The moves by Russia suggest economic sanctions are not having any significant impact in holding off aggression,” said Yeap Jun Rong, a market strategist at IG.
“With retaliation measures coming from Western powers soon, it seems that the situation may show no signs of easing,” he added.