Russian incursion into Ukraine roils world markets, oil prices soar

4 yıl önce

Global markets tumbled steeply Thursday as Russia launched a military assault on Ukraine, with investors bracing for a period of turmoil and energy-related disruptions.

Most major Asian stock indexes tumbled around 3 percent in trading, and markets in Europe fell at a similar levels in the early hours. For many indexes it was the sharpest decline since late last year, when the omicron variant sparked fears of another dark phase in the pandemic. In the United States, Dow futures sank more than 700 points.

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Though the Russian incursion is just beginning, signals early Thursday — including strikes across Ukraine — suggested a wide-ranging military offensive that would trigger deep sanctions from the United States and European Union that would hurt not just the Russian economy but also their own.

The price of Brent crude oil hit $100 a barrel for the first time since 2014, and U.S. oil prices jumped 6 percent. Russia is a dominant natural gas and oil exporter, particularly to Europe, and some of its supply transits via pipeline across Ukraine.

The big bust in the oil fields

The attack comes at a time when the global economy is still facing a degree of pandemic-related challenges in the form of inflation, chaotic supply chains, and rampant worker resignations.

For all the immediate financial reaction Thursday, no country absorbed greater losses than Russia, whose major stock market index nosedived some 45 percent in the early hours Thursday, hitting its lowest level since 2016. Trading was briefly suspended amid the free-fall.

In recent days, as Russian President Vladimir Putin telegraphed the beginning of an offensive, the ruble has steadily lost value against the dollar, meaning Russians will have less spending power when they go abroad. The ruble is at its weakest point in at least the last 10 years.