Stocks plummet, oil prices soar after Russia’s attack on Ukraine

US markets fell, after the global slump in stocks and the rise in oil prices of more than $ 7 on Thursday after Russian President Vladimir Putin launched military action in Ukraine, This prompted Washington and Europe to pledge to impose sanctions on Moscow that may disturb the global economy.

Dow futures tumbled nearly 800 points late Wednesday as investors retreated amid concerns that a prolonged conflict could drive up energy prices, increase inflationary pressures and slow economic growth around the world. They recovered quite a bit early Thursday and are down about 600 pips. S&P 500 futures were down 1.5% and tech-heavy Nasdaq futures were down 2%.

Asia Pacific shares were also sold off, with markets in Hong Kong and Sydney down 3%, while Tokyo and Seoul fell 2%. European stock markets fell 2.5% to 4% at the open. Russia’s main stock market fell more than 35% in trading Thursday, with MOEX مؤشر indicator More than 150 billion dollars in value is lost, according to Bloomberg.

Cryptocurrency markets also fell sharply as buyers sought safer havens such as the US dollar and gold. The Russian ruble fell to a record low against the dollar, shares on the Moscow Stock Exchange fell 10%, and cryptocurrency markets fell sharply as buyers sought safer havens such as the US dollar and gold. The Russian ruble fell to a record low against the dollar, and shares on the Moscow Stock Exchange plunged 10%.

The Ukraine offensive began moments after Russian President Vladimir Putin announced that he had “decided to conduct a special military operation” to protect the Donbass region of eastern Ukraine. CBS News reporters reported hearing explosions in the capital, Kiev, and in the eastern city of Kharkiv.

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A Ukrainian government spokesman said early Thursday that “cruise and ballistic missile strikes are underway at control centers” in Kiev.

Oil prices jumped nearly $3, topping more than $100 a barrel for the first time since 2014, amid fears that the crisis in Eastern Europe could disrupt Russian crude supplies. Russia represents about 12% of the world’s oil supply It provides about 40% of the gas to the European Union. Most of this fuel is delivered via pipelines, including in Ukraine, according to Eurasia Group.

President Biden announced on Tuesday Sanctions against Russia After Russian President Vladimir Putin sent military forces to the eastern separatist regions of Ukraine. Experts now expect the United States and the European Union to respond to the latest hostilities with tougher economic sanctions, which could invite Russia to respond with its own measures.

“The response to the attack and sanctions will have far-reaching implications for the global economy,” analysts at political risk consultancy Eurasia Group said in a report. He added that “oil and gas prices will rise significantly, which will enhance inflationary pressures and burden financial markets and global growth.”


Ukraine declares a nationwide state of emergency

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Although the United States is not dependent on Russian energy, rising global oil costs since late 2021 have put prices at the pump for Americans. The national average for a gallon of gas is $3.53 — 21 cents more than it was in January and 90 cents more than a year ago, according to the AAA. The highest price ever for a gallon of regular gas in the United States was $4.11 in July of 2008.

“Russia is one of the largest oil producers in the world after only the United States and Saudi Arabia,” AAA spokesman Andrew Gross said in a statement. Transfer. “And if they choose to withhold their oil from the global market, such a move will eventually be reflected in higher gas prices for American drivers.”

The S&P 500 down 1.8% It hit an eight-month low on Wednesday and is now in “correction” territory, with a loss of at least 10% from its recent peak, while the Dow and Nasdaq also closed lower. US stocks have fallen this year on investor expectations that the Federal Reserve will start raising interest rates as early as next month in an effort to curb inflation.

The Associated Press and Reuters contributed to this report.

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