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Ukraine conflict: Oil price soars to highest level since 2008

  • Ukraine conflict: Oil price soars to highest level since 2008
    Brent crude - the global oil benchmark - rose to above $139 a barrel, before easing to around $130. Ukraine conflict: Oil price soars to highest level since 2008
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Brent crude - the global oil benchmark - rose to above $139 a barrel, before easing to around $130.

 

Oil prices have soared to the highest level since July 2008 after the US said it was discussing a potential ban on Russian supplies with other countries.

Brent crude - the global oil benchmark - rose to above $139 a barrel, before easing to around $130.

Energy markets have been rocked in recent days over supply fears triggered by the Russian invasion of Ukraine.

Consumers are already feeling the impact of higher energy costs as fuel prices and household bills jump.

Petrol and diesel prices have already soared, but the boss of fuel delivery firm Portland Fuel, James Spencer, told the BBC on Monday that another rise of about 12% was likely.

The crisis continues to cast a shadow over share markets. The main stock exchanges in France and Germany sank more than 4% in early trading, while London's FTSE 100 was more than 2% down.

That came after a fall Asia, with Japan's Nikkei closing down by almost 3% the Hang Seng in Hong Kong trading 3.6% lower.

The price of gold, a haven in troubled times for investors looking for security, hit $2,000 an ounce for the first time in almost 18 months.

On Sunday, the US Secretary of State Antony Blinken said the Biden administration and its allies were discussing a ban on Russian oil supplies.

Later, US House of Representatives Speaker Nancy Pelosi said the chamber was "exploring" legislation to ban the import of Russian oil and that Congress this week intended to enact $10bn (£7.6bn) of aid for Ukraine in response to Russia's military invasion.

"The House is currently exploring strong legislation that will further isolate Russia from the global economy," Ms Pelosi said in a letter.

The comments came as pressure grows on the White House and other Western nations to take tougher action against Moscow over its invasion of Ukraine.

A Russian oil embargo would be a major escalation in the response to the invasion of Ukraine and would potentially have a major impact on the global economy.