U.S. markets dive as Ukraine crisis keeps pushing up oil and gas prices

US stock markets fell on Monday as another major jump in oil prices fueled by Russia’s war in Ukraine threatens to squeeze inflation control over the world economy.

The S&P 500 index closed nearly 3%, while the Dow fell nearly 2.4%, or nearly 800 points, to 32,817. The Nasdaq compound fell 3.6%. Shares are at the pace of their worst daily losses since Russia invaded Ukraine.

Tighter US sanctions are expected against Russia as the conflict in Ukraine deepens. Democrat Congressman Adam Schiff of California told CBS News on Sunday in Face the Nation that he believes there is “strong” bipartisanship supporting the US ban on Russian oil and natural gas imports.

U.S. companies ranging from banks to oil companies and Internet service providers are cutting off Russia’s access to its services after its invasion of Ukrainei the list of other companies that do the same is growing daily.

“History suggests that major disruptions in oil supplies, which would likely represent a proposal to ban Russian oil imports, could have a large weight on the U.S. stock market,” said Thomas Mathews, a market economist. Capital Economics, in a research note.

A limited ceasefire

Russian forces were hitting some Ukrainian cities with rockets even later Moscow announced another ceasefire and proposed a handful of land runners to allow civilians to flee Ukraine from Monday.

A temporary ceasefire similar to two Ukrainian cities failed over the weekend, and both sides blamed each other.

U.S. House Speaker Nancy Pelosi said the House was exploring legislation to further isolate Russia from the global economy, including a ban on importing its oil and energy products into the United States.

Oil prices came under additional pressure after Libya’s national oil company said an armed group had closed two crucial oil fields. The measure caused the country’s daily oil production to fall by 330,000 barrels.

But reports say U.S. officials may be considering easing sanctions against Venezuela. This could release more crude oil and alleviate concerns about a reduction in Russia’s supply.

US crude rose from $ 5.21 to $ 120.89 a barrel in e-commerce on the New York Stock Exchange, while the world benchmark exceeded $ 130. Brent crude, the international price standard, reached $ 139.13 a barrel before falling on Monday. The record high for oil prices was $ 147.50 in July 2008, according to Bloomberg.

Rising world oil prices have pushed the average price of gasoline in the US above $ 4 per gallonfor the first time since 2008, according to the AAA engine club.

Markets around the world have changed wildly recently amid concerns over high prices for oil, wheat and other commodities produced in the region due to the invasion of Russia, igniting already high global inflation. The conflict in Ukraine also threatens the food supply of some regions, such as Europe, Africa and Asia, which depend on the vast and fertile farmland of the Black Sea region, known as the “barn of the world.”

“The conflict between Ukraine and Russia will continue to dominate market sentiment, and so far there are no signs of conflict resolution that could put a limit on risk sentiment during the new week,” said Yeap Jun Rong, market strategist of IG in Singapore.

“It should be clear by now that economic sanctions will not prevent any aggression by the Russians, but will serve more as a punitive measure at the expense of the implications for global economic growth. The high price of oil can be a threat. for business and consumer margins. spending prospects, “Yeap said.