After a fire broke out at Ukraine’s Zaporizhzhia nuclear power facility, the world’s biggest, stock values dropped.
The FTSE 100 index in London began 0.6 percent down, while the Nikkei index in Japan finished 2.2 percent lower.
Oil prices remained volatile, with Brent crude fetching $112 per barrel.
The facility was shelled by Russian soldiers, which caused the fire. Officials stated that the plant’s safety was “secured,” which alleviated some investor fears.
Later, the International Atomic Energy Agency (IAEA) stated that it had communicated with Ukraine’s leadership and that crucial plant equipment was still operational.
The bombardment has sparked worldwide outrage, with US Vice President Joe Biden joining Ukrainian President Volodymyr Zelensky in calling for Russia to stop shelling and allow firemen access to the site.
Russia’s invasion of Ukraine has sent shockwaves through the global financial and energy markets in recent days, as investors try to figure out what sanctions and supply chain disruptions may mean.
Brent crude, the global oil standard, hit a high of more than $119 a barrel this week, the highest level since May 2012.
Natural gas and coal prices have also risen on worldwide markets.
The average cost of fuel and diesel on UK forecourts has reached new highs due to rising wholesale energy prices.
Since the conflict in Ukraine erupted, commodity dealers – who buy and sell everything from copper, nickel, and aluminum to coffee and wheat – have seen prices skyrocket.
Higher commodity costs are expected to filter down to UK consumers, according to Matthew Chamberlain, CEO of the London Metals Exchange.
“Aluminum and nickel prices have increased by 30% since the beginning of the year, and that will eventually be passed on to consumers when you buy your aluminum drinks cans, or when you renovate your house and need copper for your wiring, all of those prices do go into the overall inflationary pressure.”
According to reporters, Panmure Gordon economist Simon French believes the UK’s inflation rate might now exceed 10% due to increasing expenses, while an industry association warned on Thursday that household energy bills in the UK could reach £3,000 per year.
The price of gold has risen 7.3 percent in a month to $1,938 per ounce, making it a safer asset in times of uncertainty.
As governments throughout the world impose strong sanctions on Russia, the Russian rouble has hit a new low against the US dollar.