Tensions between Ukraine and Russia have risen, and oil prices have risen as a result of supply concerns.

Fears that the Ukraine-Russia crisis would impair global supplies are driving up oil and gas prices.

On Tuesday, the price of Brent crude, a global benchmark, hit a seven-year high of $99.38 (£73) a barrel.

After recognizing two rebel-held territories in Ukraine's east as independent states, Russia dispatched soldiers there.

The FTSE 100 stock index fell more than 1.4 percent in London before recovering some ground.

Asian stock markets ended the day lower, while stock exchanges in the United States were braced for losses.

Russia, the world's second-largest oil exporter after Saudi Arabia, has been threatened with sanctions by the United Kingdom and other western allies. Russia is also the world's leading natural gas producer.

Russia has stated that its forces will be involved in "peacekeeping" in the self-proclaimed people's republics of Donetsk and Luhansk.

The United States, on the other hand, has argued that referring to them as peacekeepers is "nonsense" and that Russia is inventing a pretext for war.

According to Sue Trinh of Manulife Investment Management, the Ukraine-Russia issue might have "significant ramifications" for oil prices, which have risen more than 10% since the beginning of the month.

She noted that sanctions requiring Russia to deliver less crude or natural gas would have a "significant impact on the world economy."

Oil could rise above $100 per barrel, according to Maike Currie, an investment director at Fidelity International, due to a combination of the Ukraine situation, a severe winter in the United States, and a lack of investment in oil and gas supplies around the world.

"Russia consumes one out of every ten barrels of oil consumed globally, so it is a huge factor in terms of oil prices, and it will, of course, harm consumers at the pump," she said.

For years, the US and EU have imposed sanctions on Russia, which have had a "huge impact" on the Russian economy.

Sanctions on financial institutions, technology such as chips, and individuals are expected to be "deepened," according to Ms. Currie.

Although Russia produces the majority of the oil and gas that the UK imports if Russian supplies are restricted, wholesale prices are likely to rise around the world.

According to analysts, this might drive up already high inflation rates in the UK and worldwide.

'A deep sea of red,' says the narrator.
Share prices fell around the world, indicating that investors were concerned about the events, which came as the global economy continues to recover from the effects of the coronavirus outbreak.

The Nikkei 225 market in Japan sank 1.7 percent, while the Shanghai Composite dropped over 1%.

The Dax fell more than 2% in Berlin and the Cac-40 fell more than 1.5 percent in Paris at first, before both indexes recovered some ground.

Markets in the United States are expected to open lower as well.

According to Song Seng Wun, an economist at CIMB Private Banking, a probable conflict is on investors' thoughts, placing markets in a "deep sea of red."

"There are fears that freight and shipping prices, which are currently expensive," he told the BBC, "could become much higher due to demand-supply disruptions."

"Another major sell-off on global markets," said Russ Mould, investment director at AJ Bell.

"Dumping commodity producers, particularly those with exposure to either Russia or Ukraine, as well as tech and travel stocks," he said.