Gas prices are set to rise around the world.
Today, Russia initiated a full-scale invasion of Ukraine by sending military units and soldiers into Ukrainian territory with hostile intentions. In response to this aggression, many countries have imposed severe sanctions or committed to halting business with Russia until the invasion ceases. Consequently, Russia’s economy has suffered a significant blow, leading to a historic plunge in its national currency, the ruble.
Conversely, amidst this turmoil, oil prices have experienced a sharp increase. As Russia is a major global exporter of petroleum, the disruption in trade has made it challenging for countries to access oil. The current price of crude oil stands at around $105 per barrel and is expected to climb further as the Russian invasion progresses.
European stocks tumbled, oil prices surged, and the ruble hit a record low against the dollar. CNN’s Christine Romans reports on the economic impact of Russian aggression https://t.co/0cm6zNHrat pic.twitter.com/JPEY0K1bYM
— CNN (@CNN) February 24, 2022
The escalating oil prices are expected to trigger a domino effect, exacerbating concerns about inflation. Russ Mould, the investment director at AJ Bell, warned, “Not only will energy costs continue to rise, but there is also a looming threat of increased food prices. Both Ukraine and Russia play significant roles as food suppliers, and any disruption in the supply chain could lead to a surge in prices as buyers seek alternative sources,” as reported by BBC.
