Russia Invasion Could ‘Exacerbate’ Inflation And Trigger Another Stock Plunge—Here’s How High Oil Prices May Rise

Russia Invasion Could ‘Exacerbate’ Inflation And Trigger Another Stock Plunge—Here’s How High Oil Prices May Rise

Share to Linkedin The price of oil has skyrocketed to seven-year highs this month amid escalating tensions between Russia and Ukraine, and analysts are warning the price surge will only get worse if the world's second-largest oil producer invades Ukraine—exacerbating decades-high inflation and sending ripple waves across markets. Members of the Ukrainian forces participate in an urban combat training exercise in the abandoned ... [+] city of Pripyat, Ukraine, on Friday. Russia denies any plans to invade Ukraine, but it has warned Kyiv against making any military move against separatist regions Moscow backs. The price of U. S. oil benchmark West Texas Intermediate jumped nearly 1% to about $94 a barrel on Monday, extending gains to about 7% this month—and reaching the highest level since September 2014—amid a buildup of Russian forces on the Ukraine border. "Russia would likely pay a steep economic price" if it invades Ukraine, David Kelly, chief global strategist at JPMorgan Funds, wrote in emailed comments Monday, noting the likelihood of costly sanctions, and noting a boost to global energy prices would be among the first repercussions given that Russia accounts for more than 10% of global production. In a Monday note, Citi Bank analysts said