Oil prices have surged past $100 a barrel for the first time since 2014 as Russia attacked Ukraine, exacerbating concerns that a war in Europe could disrupt global energy supplies.
Brent crude hit a high of $102.48 a barrel, the highest since September 2014, and was at $102.06 a barrel at 0547 GMT, up $5.22, or 5.4%, according to Reuters.
Russia is the world’s second-largest oil producer, mainly selling its crude to European refineries, and is the largest supplier of natural gas to Europe, providing about 35% of the latter’s supply.
Oil and gas prices are climbing on fears that the Ukraine-Russia crisis will disrupt supplies across the world.
Ukraine’s president has declared martial law and urged citizens not to panic as Russia launched military strikes on the country, while the country’s foreign minister called it a “full-scale invasion”.
The Russian president announced the action during a televised address early on Thursday morning, claiming the move was a response to threats from Ukraine.
Ukraine’s border guard agency said the Russian military attacked the country from neighbouring Belarus.
The agency said that the Russian troops unleashed an artillery barrage as part of an attack backed by Belarus and Ukrainian border guards were firing back, adding that there was no immediate report of casualties.
Cost of living crisis intensifies
Motoring grout the RAC has warned the crisis will continue to push up UK petrol prices further, after they hit a record 149.12p a litre recently.
The crisis will be a worry for millions of families who are facing a “cost-of-living catastrophe” due to soaring energy bills and rising taxes.
Invasion is disastrous for the people of Ukraine, but the economic impacts could go much further directly hitting countries like Germany, which gets 40% of its gas from Russia.
Experts have predicted UK households could face price surges as high as 35% in their gas bills.
Western nations and Japan on Tuesday punished Russia with new sanctions for ordering troops into separatist regions of eastern Ukraine, and threatened to go further if Moscow launched an all-out invasion of its neighbour. So far, there are no sanctions on energy trade.
Scottish First Minister Nicola Sturgeon said the Kremlin “must face the severest consequences” for “unprovoked aggression” in Ukraine.
She tweeted: “Overnight developments in Ukraine – however anticipated – are appalling and horrific.
“The Kremlin must face the severest consequences for this unprovoked aggression.
“And the world must stand in solidarity with the people of Ukraine #StandWithUkraine”.
