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Oil soars past $100 after Russia orders troops into Ukraine | Oil soars past $100 after Russia orders troops into Ukraine |
(about 1 hour later) | |
Oil prices have surged past $100 (£74) a barrel to hit their highest level for more than seven years after Russia launched an invasion of Ukraine. | |
Shares also fell sharply and the price of gold rose as investors worried about the possible impact of the conflict. | |
Russia is the second biggest exporter of crude oil, and is also the world's largest natural gas exporter. | Russia is the second biggest exporter of crude oil, and is also the world's largest natural gas exporter. |
The price of oil topped $103 a barrel, and the RAC warned that UK petrol prices were set to rise further. | |
The UK only gets 6% of its crude oil and 5% of its gas from Russia, but there are concerns sanctions could constrict supplies and drive up prices worldwide. | |
UK consumers are already paying a high price for energy and fuel, with demand surging following the easing of Covid restrictions. | |
Russia launches military operation in Ukraine | Russia launches military operation in Ukraine |
What sanctions are being imposed on Russia? | What sanctions are being imposed on Russia? |
RAC fuel spokesman Simon Williams said the increase in the price of oil "will inevitably lead to wholesale fuel prices going up which will in turn push record pump prices even higher". | |
If the oil price continues to rise to hit $110 a barrel "there's a very real danger the average price of petrol would hit £1.55 a litre", he said. | |
If prices do get this high it will "cause untold financial difficulties for many people who depend on their cars for getting to work and running their lives as it would sky rocket the cost of a full tank to £85". | |
Average prices per litre for unleaded petrol hit a record high of 149.30p on Wednesday. | |
Sanctions move | |
Stock markets across Europe saw steep falls, with the UK's FTSE 100 index down 2.5% and Germany's Dax index falling 3.5%. | |
Earlier, stocks in Asia and had fallen sharply, while the Moscow Stock Exchange suspended trading shortly after the rouble plunged to its lowest since early 2016. | |
The price of gold - which is considered a haven asset in times of uncertainty - rose 2%. | |
In response to Russia's military action, European Union leaders said they would put more sanctions in place on Russia. | In response to Russia's military action, European Union leaders said they would put more sanctions in place on Russia. |
The European Council said it would "impose massive and severe consequences on Russia for its actions". | The European Council said it would "impose massive and severe consequences on Russia for its actions". |
The US and EU had already imposed a series of sanctions in response to Mr Putin's actions against Ukraine. | The US and EU had already imposed a series of sanctions 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 UK has frozen the assets of five banks and three Russian billionaires, who have also been hit with travel bans. |
On Tuesday, Boris Johnson said these sanctions were a "first barrage" and could be extended. | On Tuesday, Boris Johnson said these sanctions were a "first barrage" and could be extended. |
The US increased increased pressure on Russia on Wednesday by imposing penalties on the Russian firm behind the Nord Stream 2 gas pipeline and its corporate officers. | |
Germany has already frozen final approval for the pipeline, which connects the country with Russia and was set to boost Russian gas exports to the EU. | |
Dmitry Medvedev, Russia's former president and now deputy chairman of its Security Council, on Tuesday said the move would hurt European consumers. | |
"Welcome to the brave new world where Europeans are very soon going to pay €2,000 for 1,000 cubic meters of natural gas!" he tweeted - suggesting prices were set to double. | |
You may also be interested in: | You may also be interested in: |
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Watch: US announces full-blocking sanctions on Russia | Watch: US announces full-blocking sanctions on Russia |