Stock market news – live: Oil prices hit $105 a barrel as Wall Street plunges

Boris Johnson says Russia chose ‘path of destruction’ after Putin launched ‘military operation’ in Ukraine

The price of oil hit a seven-year high of nearly $105 (£78) after Russia invaded Ukraine.

Brent crude was up 6.6% at $103.21 a barrel, the highest since August 2014, while US light crude jumped 6.2% to $97.75 a barrel.

Gas prices are also on the rise, up 40%, amid fears the conflict could disrupt global supply chains.

Wall Street fell sharply at the open on Thursday following the Russian invasion of Ukraine.

The Dow Jones Industrial Average plunged more than 800 points, or about 2.5%.

Panicked investors fled for the safety of fixed income assets as markets reacted to a worst-case geopolitical scenario due to the impact of soaring inflation.

In London, the FTSE 100 index plunged more than 200 points, or 2.7%, at the open on Thursday in reaction to the Russian invasion of Ukraine, which US President Joe Biden called a “no provoked and unjustified”.

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Food prices are expected to rise and inflation could reach 8.2% due to the invasion

The government said it would monitor and offer support if needed if Russia’s large-scale invasion of Ukraine leads to a spike in global food prices.

Ukraine is a major supplier of wheat and maize, with economists warning that the UK’s cost of living crisis could be exacerbated with inflation well above current forecasts of around 7% later this year.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said if Thursday’s jumps in oil, gas and power products continue, it could push inflation up to 8.2% in April.

It would only fall back to 6.5% by the end of the year, he added.

Inflation hit 5.5% in January and the Bank of England estimates it will peak at over 7% in April, when domestic energy bills rise by 50% when the new price cap is reached.

Mr Tombs said: “The current surge in oil, natural gas and electricity prices, if sustained, points to a further 1.5pp increase in the UK CPI.

“CPI inflation is now expected to peak at around 8.2% in April and only fall back to 6.5% by the end of the year.

“Hard to see how real household spending continues to rise.”

Matt MatherFebruary 24, 2022 3:30 p.m.

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Dispute could hit Britain’s seasonal workforce

Ukrainians made up two-thirds of the UK’s seasonal workforce last year, raising questions about how the dispute could affect recruitment on British farms.

A total of 19,920 seasonal worker visas were issued to Ukrainian nationals in 2021, or 67% of the total, according to Interior Ministry immigration figures.

The equivalent number for Russian nationals is 2,278, or 8%.

The University of Oxford’s Migration Observatory said the figures raise “questions about the potential impact of the conflict in Ukraine on recruitment to UK farms, as the security situation in the country deteriorates”.

According to the Observatory, Ukrainians were the second most common nationality among people who obtained a work visa in the UK in 2021, almost exclusively thanks to the seasonal worker visa.

Director Madeleine Sumption said: “For most of the past 15 years, the majority of migrant workers coming to the UK have come from EU countries. Since the end of free movement in the EU, the vast majority now comes from non-EU countries.

“Today’s data shows the extent to which British farms have relied on Ukrainian workers in particular, raising the question of whether this source of workers will be disrupted by unpredictable events in this region.”

Matt MatherFebruary 24, 2022 3:07 p.m.

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Ukraine crisis: Wall Street plunges at open as Russian invasion rattles markets

Wall Street fell sharply at the open on Thursday following the Russian invasion of Ukraine.

The Dow Jones Industrial Average plunged more than 800 points, or about 2.5%.

Panicked investors fled for the safety of fixed income assets as markets reacted to a worst-case geopolitical scenario due to the impact of soaring inflation.

My colleague Olivier O’Connell will have more on this story as it goes:

Matt MatherFebruary 24, 2022 2:59 p.m.

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Russian ruble and Turkish lira vulnerable

More reaction from the city.

Cristian Maggio, head of strategy at TD Securities, London, said: “The currencies that will underperform the most are the most volatile – the Russian ruble and the Turkish lira.

“For the ruble and not to mention the Ukrainian currency, the other risk is that liquidity drags on. Investors will not want to be involved at all.

“What’s going to happen, only Putin knows. As usual, Russian sources have denied any intention to get involved militarily in Ukraine and here we are, in the biggest military operation in Europe since World War II. Everything can happen from here.

“The refuge offer is exactly what is happening.”

Matt MatherFebruary 24, 2022 2:24 p.m.

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Commodity prices soar

Russia’s attack on Ukraine rocked global markets on Thursday, pushing crude oil and natural gas prices higher as investors flock to gold and government debt – traditional safe havens.

Brent crude, the global oil price benchmark, hit $102, topping $100 a barrel for the first time since 2014. Analysts warned on Wednesday that a full-scale attack on Ukraine from Russia could quickly drive prices well above £1.50 a liter at the pump. for UK consumers.

Our Economic Editor Anna Isaac reports:

Matt MatherFebruary 24, 2022 1:45 p.m.

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ICYMI: Oil prices top $100 a barrel as Putin declares war on Ukraine

Oil prices rose above $100 a barrel for the first time since 2014 after Vladimir Putin announced a Russian invasion of Ukraine.

Brent crude hit highs of $102.48 on Thursday morning, rising more than 5% as reports of explosions in Kyiv and other major cities across the country filtered across the world.

Russia is the world’s second largest producer of oil and conflict and is a major supplier to Europe. It is also the continent’s largest natural gas supplier.

My colleague Eleanor Sly has more details below:

Matt MatherFebruary 24, 2022 1:30 p.m.

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Market reaction went ‘by the playbook’

Reaction from Seema Shah, Chief Global Strategist, Leading Global Investors, London:

“The market reaction went through the playbook.”

“Usually with geopolitical events, the response lasts for a while, and then the focus shifts to the economic context.”

“We think this is a short-lived rout and markets will come back.”

Matt MatherFebruary 24, 2022 12:54 p.m.

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“The market is very hard hit”

Markets are “very hard hit” following Russia’s invasion of Ukraine, an analyst has warned.

“There are no buyers here for risk, and there are lots of sellers,” which is hurting stocks,” said Chris Weston, head of research at brokerage Pepperstone.

Matt MatherFebruary 24, 2022 12:26

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Petrol price warning hitting £1.60 a liter as Russia invades Ukraine

Motorists are being warned that petrol prices could rise to £1.60 a liter after Russia invades Ukraine.

The price of Brent crude oil hit its highest level in eight years after rising 6.3% to US$102.90 a barrel shortly after 8 a.m. Thursday.

Average fuel prices on UK forecourts have already reached record highs, and the situation is set to worsen as retailers pass on further wholesale cost increases.

Neil Lancefield has more below:

Matt MatherFebruary 24, 2022 12:07

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Russian stock market crashes

The Russian stock market has crashed dramatically as investors rush to get cash out of the country.

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The RTS index of large company stocks is down 35% today and 50% this week.

Matt MatherFebruary 24, 2022 12:00

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