Ukraine Crisis | Oil prices surge above $100 a barrel as war rages
Published:Tuesday | March 1, 2022 | 11:55 AM
NEW YORK (AP) — Oil prices soared Tuesday and investors shifted more money into ultra-safe US government bonds as Russia stepped up its war on Ukraine.
Stocks fell following a volatile day for major indexes as investors tried to measure how the conflict will impact the global economy.
The S&P 500 index fell 0.7% as of 10:14 a.m. Eastern. The Dow Jones Industrial Average fell 337 points, or 1%, to 33,554 and the Nasdaq fell 0.5%.
The bigger moves came from the markets for oil, agricultural commodities and government bonds.
Oil has been a key concern because Russia is one of the world's largest energy producers.
The latest bump in prices increases pressure on persistently high inflation that threatens households around the world.
US benchmark crude oil prices rose 6.6% to $101.87 per barrel, reaching the highest price since 2014.
Brent crude, the international standard, rose 6.6% to $104.44.
Russia's invasion of Ukraine has also put more pressure on agricultural commodity prices, which were also already getting pushed higher with rising inflation.
Wheat and corn prices rose more than 4% per bushel and are already up more than 20% so far this year. Ukraine is a key exporter of both crops.
Investors continued putting money into bonds. The yield on the 10-year Treasury fell to 1.75% from 1.83% late Monday. It is now back to where it was in early February, before topping 2% for the first time in over two years.
The conflict in Ukraine has shaken markets globally and added to worries about economic growth in the face of rising inflation and plans from central banks to raise interest rates.
The US and its allies have been putting significant pressure on Russia's financial system as that nation continues its push into Ukraine and its key cities.
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