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• Brent crude rises $1.81 to $97.20 a barrel
• WTI crude increases $2.43 to $93.50 a barrel
Oil prices surged on Tuesday over mounting tensions between Russia and Ukraine.
International benchmark Brent crude soared $1.81 to $97.20 a barrel by 9:18 AM ET, after touching its highest since October 2014 at $99.50 a barrel.
The U.S. benchmark, West Texas Intermediate (WTI) crude, spiked $2.43 to $93.50 a barrel.
On Monday evening, Russian President Vladimir Putin sent troops into two separatist areas of eastern Ukraine, declaring Donetsk and Luhansk independent.
Rising tensions have caused market anxieties, driving up oil prices. Putin's decision to recognize the independence of Donetsk and Luhansk was denounced by the White House. A full-scale invasion of Ukraine, according to Western nations, might be approaching.
Aluminum, nickel, and wheat, all of which are produced in huge amounts in Russia or Ukraine, also increased in price.
A Russian invasion of Ukraine might momentarily send oil prices beyond $100 per barrel. Europe would face a severe energy shock since Russia is an important provider of energy to Europe.
A deal aimed at restoring Iran's 2015 nuclear accord with world powers is extremely close to being finalized. This deal would return around 1 million barrels of oil to the market every day, although the timeframe is undetermined.
Meanwhile, the imminent threat is causing global financial markets to tremble. US indices decline as investors fled riskier assets amid geopolitical tensions between Russia and Ukraine.
Picture Credits: CNN