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The escalating conflict in Ukraine is having an impact on oil prices. This is as high as it was last in 2014.
The reason for the increase is the escalation in the Ukraine conflict.
REUTERS
Putin announced military action in Ukraine.
REUTERS
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Putin has announced military action in eastern Ukraine.
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Explosions can be heard in several cities in Ukraine.
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The price of oil rises above 100 dollars
After the announcement of a Russian “military operation” in Ukraine, the price of a barrel of oil rose to over $100 for the first time in more than seven years on Thursday night. The price of a barrel of Brent crude rose to $100.04 on Asian markets. The Hong Kong stock market plunged more than 3 percent in response to Russian President Vladimir Putin’s announcement.
“The market has always tried to gauge whether Russia would stop in the Donbass,” Archyde.com news agency quoted financial expert Chris Weston as saying. It is now “pretty clear” that the attack is also aimed at the capital Kiev – one of the worst scenarios. Because of the increasing risks, traders are now selling their investments, but there are hardly any buyers.
According to Archyde.com, the price of gold and the value of the dollar have also risen. Investors fled to safe investments. The Russian ruble, on the other hand, is in free fall as further sanctions once morest Russia threaten. “Markets are now setting prices according to the risk that something terrible might happen,” economist Rob Carnell told the news outlet.
“Military operation” announced
Putin had previously announced a “military operation” in Ukraine in a late-night televised address. “I have made the decision for a military operation.” Putin called on the Ukrainian military to “lay down their arms” and threatened retaliation for any interference in the Russian operation. Immediately following the announcement, explosions were heard in several cities in Ukraine, including the capital Kiev and the port cities of Mariupol and Odessa.
US President Joe Biden strongly condemned the Russian military attack on Ukraine and threatened the government in Moscow with consequences. The US President spoke on Thursday night of an “unprovoked and unjustified attack” on Ukraine. “President (Vladimir) Putin has chosen a premeditated war that will result in catastrophic loss of life and human suffering.”
On Wednesday evening, the Kremlin said that the separatists in eastern Ukraine had asked Russia for “help” in “repelling the aggression” of the Ukrainian army. On Monday, Russia recognized the self-proclaimed “people’s republics” of the pro-Russian separatists in eastern Ukraine as independent. The West sees this as a clear breach of international law.
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(AFP / fur / las)