Stocks slide and oil surges on renewed fear of Russia invasion
The Dow Jones Industrial Average fell nearly 400 points, or about 1%, after the Biden administration said that it would be ready to respond if Russia did invade. The S&P 500 and Nasdaq were down 1.6% and 2.5% respectively. A top exchange-traded fund of Russian stocks (RSX) plunged more than 6%. Oil prices spiked about 4%.
Analysts have warned that a conflict in Ukraine could threaten energy supplies, including through potential sanctions. Russia is the world’s No. 2 producer of both oil and natural gas.
Oil could “easily” hit $120 a barrel if there are “any disruptions” to oil flows from Russia and possibly go as high as $150, JPMorgan analysts said earlier this week.
The peak for Brent crude is $147.50, set in July 2008. Any further spike in energy prices would add to the already high levels of inflation that are pinching US consumers.
The White House indicated that Russia could launch air strikes before the Winter Olympics in Beijing end later this month and warned Americans to leave Ukraine.
