LONDON —
Stock markets fell, metals prices hit record highs and oil surged on Monday after the
US raised the prospect of an embargo on Russian crude.
اضافة اعلان
European markets seesawed in afternoon
trading, paring back some losses after sharp drops earlier in the day following
a four percent fall in Hong Kong.
Wall Street was lower in early trading.
"The catalyst for the overnight fallout
were reports that the
US and
Western allies are considering a ban on Russian
oil imports," said Briefing.com analyst Patrick O'Hare.
US Secretary of State Antony Blinken said
Sunday that the
White House and allies were in talks about banning oil imports
from Russia following its invasion of Ukraine.
But German Chancellor
Olaf Scholz on Monday
cautioned against banning Russian oil and gas, saying doing so could put
Europe's energy security at risk.
The benchmark Brent North Sea crude oil
contract soared to a near 14-year high as it reached $139.13 before cooling to
$121.54.
The record high stands at $147.50, recorded in 2008 during the global financial crisis.
European gas prices, meanwhile, struck
record peaks on energy supply fears.
Russia is one of the world's biggest crude
producers and is also a leading supplier of natural gas.
"As the dust has settled, fear of
European bans on Russian oil — and potential retaliation or follow-up moves in
gas or other commodities — has subsided," said
OANDA analyst Craig Erlam.
Commodities have been red hot since
Russia's
assault on its neighbor, with gold rising above $2,000 an ounce thanks to the
metal's status as a haven investment, before falling back to $1,986.
Aluminum, copper, and palladium prices
kicked off the week with record highs and nickel rocketed by more than 25
percent in value.
"Commodity and energy prices have
inevitably been under upward pressure, with escalating sanctions against Russia
and the shuttering of some
Ukrainian ports driving the search for replacement
supplies of crops, metals and energy," noted Richard Hunter, head of
markets at Interactive Investor.
Ukraine, one of the world's top wheat
producers, has set export restrictions on the crop and other agricultural
products, the Interfax Ukraine news agency reported.
The conflict has pushed wheat prices higher
as Russia is the world's top exporter of the cereal and Ukraine is the fourth
according to US official estimates.
Stagflation worries
The surge in prices is handing a headache to
central banks, which have already begun removing pandemic-era cash stimulus and
are raising interest rates to bring down inflation that stood at the highest
levels in decades even before the invasion.
"The current backdrop is also stoking
stagflation concerns, with rising inflationary pressure unlikely to be offset
by sufficient global economic growth to prevent a stagnant environment,"
Hunter added.
The
International Monetary Fund warned
at the weekend that the war and sanctions on Russia would have a "severe
impact" on the global economy.
In foreign exchange Monday, the euro sank to
the lowest level for almost two years against the dollar, pummeled by fears of
sanctions on Russian energy that would hit the
eurozone's economic recovery,
traders said.
The euro slid 1.1 percent to $1.0806 before
recovering slightly later in the day, while the ruble hit a record-low 142.18
against the dollar.
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