Ukraine conflict: Oil price soars to highest level since 2008

Oil prices have risen to their highest level since 2008 after the US said it was discussing a possible embargo on Russian oil with its allies.

Brent crude — the global oil benchmark — surged above $139 a barrel in Asian trade before slipping below $130.

Energy markets have been rocked in recent days on supply fears sparked by the Russian invasion of Ukraine.

Consumers are already feeling the effects of higher energy costs as fuel prices and household bills soar.

Asian stock markets fell in early trade on Monday, with Japan’s Nikkei index down more than 3% and Hong Kong’s Hang Seng down 2.7%.

US Secretary of State Antony Blinken said Sunday the Biden administration and its allies would discuss an embargo on Russian oil supplies.

The comments came as pressure mounts on the White House and other Western nations to crack down on Moscow over its invasion of Ukraine.

A Russian oil embargo would be a major escalation in the response to the invasion of Ukraine and potentially have a significant impact on the global economy.

The price of Brent crude rose more than 20% last week as the conflict sparked fears of oil shortages in world markets.

Consumers around the world have seen costs surge in the past few days as they feel the impact of rising wholesale energy prices.

On Sunday, the American Automobile Association said US gasoline prices at the pump rose 11% last week to their highest level since July 2008.

In the UK, the average petrol price has risen to over £1.50 a liter, according to the RAC.

Meanwhile, a rise in gas prices amid the Ukraine conflict has fueled fears that annual UK household electricity bills could hit £3,000.

Gas prices in Europe and the UK have hit record levels in recent days amid continued fears that Russian supplies could be cut.

On Sunday, energy giant Shell defended its decision to buy Russian crude despite the invasion of Ukraine.

The company said in a statement that the decision to buy the fuel at a reduced price was “difficult”.

It confirmed it had bought a shipment of Russian crude on Friday but had “no alternative”.

Ukrainian Foreign Minister Dmytro Kuleba lashed out at the energy company, asking on Twitter: “Doesn’t Russian oil smell Ukrainian blood to you?”

It came as global brands continue to sever ties with Russia over the conflict.

Over the weekend, video-sharing app TikTok announced it had suspended live streaming and new content from its platform in Russia as it reviews tough new laws to crack down on “fake news” about the country’s armed forces.

Meanwhile, streaming giant Netflix said it suspended its services in the country following its invasion of Ukraine.

Visa, Mastercard and PwC also joined the growing list of Western firms cutting ties with Russia.