After the US stated it was negotiating a possible restriction on Russian shipments with other nations, oil prices rose to their highest level since July 2008.
Brent crude, the worldwide benchmark for oil, climbed above $139 per barrel before dropping down to around $130.
The energy markets have been shattered in recent days as a result of supply concerns sparked by Russia’s invasion of Ukraine.
As gasoline prices and home bills rise, consumers are already experiencing the effects of increasing energy expenditures.
Asia’s stock markets tumbled on Monday, with Japan’s Nikkei finishing over 3% down and Hong Kong’s Hang Seng trading 3.6 percent lower.
The Biden administration and its allies are mulling a restriction on Russian oil shipments, according to US Secretary of State Antony Blinken.
Later, US House Speaker Nancy Pelosi said the chamber was “exploring” measures to prohibit Russian oil imports and that Congress planned to pass $10 billion (£7.6 billion) in aid for Ukraine this week in reaction to Russia’s military assault.
In a letter, Ms Pelosi stated, “The House is presently contemplating robust measures that would further isolate Russia from the global economy.”
The remarks come as pressure mounts on the White House and other Western nations to impose harder measures against Russia in response to its invasion of Ukraine.
A Russian oil embargo would be a significant step forward in the response to Ukraine’s invasion and may have a significant impact on the global economy.
“While the United States may be able to impose an embargo on Russian oil imports, Europe cannot afford to do so. Worse, with his back to the wall, [Russian President Vladimir] Putin may cut off gas supplies to Europe, thereby cutting off the continent’s energy lifeline “According to Vandana Hari of the oil market research firm Vanda Insights,
Last week, the price of Brent crude increased by more than 20% as worries of a worldwide oil scarcity arose as a result of the fighting.
Costs have risen for consumers throughout the world in recent days as a result of increased wholesale energy prices.
According to the American Automobile Association, US gasoline prices at the pump have increased by 11% in the last week, reaching their highest level since July 2008.
Petrol and diesel prices in the UK have risen sharply, averaging 153p and 157p per litre, respectively.
However, James Spencer, managing director of Portland Fuel, claimed that bad news had continued to arrive, and that costs were going to climb considerably more.
“Nothing will happen soon, even if we can acquire more supplies on the market,” he told reporters. “I’m worried we’ll have to pay more than £1.70-£1.75 a litre.”
Individual automobile drivers, he noted, have alternatives to reduce their use to some extent by driving less. Businesses with no other options, on the other hand, were starting to feel the pinch, according to Mr Spencer.
Meanwhile, as a result of the Ukraine crisis, gas prices have risen, raising fears that yearly average UK home energy expenditures might surpass £3,000.
Gas prices have risen to new highs in Europe and the United Kingdom in recent days, owing to concerns that Russian supplies may be curtailed.
Despite the invasion of Ukraine, energy giant Shell defended its decision to buy Russian crude oil on Sunday.
The choice to acquire the fuel at a lower price was “tough,” the firm stated in a statement.
It acknowledged that it had purchased a cargo of Russian crude oil on Friday, saying that it had “no other choice.”
Dmytro Kuleba, Ukraine’s foreign minister, slammed the energy corporation on Twitter, saying, “Doesn’t Russian oil smell Ukrainian blood for you?”
The impetus to find alternative suppliers has increased due to rising crude prices and the possibility of a ban on importing Russian oil.
The US is likely to encourage Saudi Arabia to boost crude output this week, and there is renewed momentum for a nuclear deal with Iran that would eliminate sanctions on its oil exports.
However, work on an agreement has slowed as Russia demanded a guarantee from the US that the sanctions imposed on it as a result of the Ukraine crisis will not damage its commerce with Iran.
As a result of the crisis, worldwide businesses are continuing to abandon connections with Russia.
TikTok, a video-sharing app, announced over the weekend that it had banned livestreaming and new material from its site in Russia while it examines severe new legislation aimed at combating “false news” regarding the country’s armed services.
Meanwhile, following Russia’s invasion of Ukraine, Netflix said that it has discontinued its services in the nation.
Visa, Mastercard, and PwC have all said that they would no longer do business with Russia.