Mar 7, 2022: According to a report by the Associated Press, the price of oil jumped more than $10 a barrel and shares were sharply lower Monday as the conflict in Ukraine deepened amid mounting calls for harsher sanctions against Russia.

On day 12 of the invasion, Brent crude oil surged over $10 early on Monday whereas benchmark U.S. crude was up nearly $9 at more than $124 a barrel. The all-time high was marked in July 2008, when the price per barrel of U.S. crude climbed to $145.29, pushing the average price for gasoline in the U.S. above $4 a gallon, a milestone already reached again this year.

Brent crude, the international standard, hit $139.13 per barrel before falling back. It was trading up $10.56 at $128.67 a barrel.

The surge followed a warning from Russian President Vladimir Putin that Ukrainian statehood was imperiled as Russian forces battered strategic locations. A temporary cease-fire in two Ukrainian cities failed over the weekend — and both sides blamed each other.

Oil prices came under additional pressure after Libya’s national oil company said an armed group had shut down two crucial oil fields. The move caused the country’s daily oil output to drop by 330,000.

Meanwhile, stock futures in the U.S. and Europe also dropped. The price of gold, which is viewed as an investor safe haven in times of crisis, jumped $26 an ounce to $1,992.90.

On Wall Street, U.S. futures fell, with the contract for the benchmark S&P 500 down 1.2% and that for the Dow industrials falling 1.0%. Stock futures in Europe also declined.

Japan’s benchmark Nikkei 225 dipped 3% in afternoon trading to 25,222.24.

Hong Kong’s Hang Seng dropped 3.5% to 21,138.25, while South Korea’s Kospi slipped 2.0% to 2,658.42. Australia’s S&P/ASX 200 shed 1.0% to 7,038.60. while the Shanghai Composite lost 1.7% to 3,389.92.

Markets worldwide have swung wildly recently on worries about how high prices for oil, wheat and other commodities produced in the region will go because of Russia’s invasion, inflaming the world’s already high inflation.

The conflict in Ukraine also threatens the food supply in some regions, including Europe, Africa and Asia, which rely on the vast, fertile farmlands of the Black Sea region, known as the “breadbasket of the world.”

U.S House of Representatives Speaker Nancy Pelosi, meanwhile, said the House was exploring legislation to further isolate Russia from the global economy, including banning the import of its oil and energy products into the United States.

Yeap Jun Rong, market strategist at IG in Singapore commented on the latest development saying, “It should be clear by now that economic sanctions will not deter any aggression from the Russians, but will serve more as a punitive measure at the expense of implication on global economic growth. Elevated oil prices may pose a threat to firms’ margins and consumer spending outlook.”

Companies ranging from the oil and gas sector to the entertainment industry have been exiting Russia. The mass exodus includes Netflix, Master and Visa, KPMG and PwC, BP and Shell, U.S and Japanese automakers, Apple and Meta, entertainment platforms like Disney and and Warner, leading brands in fashion and retail, financial service providers, international sporting bodies, along with aviation and shipping leaders.

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