SYDNEY: Oil prices soared more than 10% in hectic trading on Monday as the risk of a U.S. and European ban on Russian product and delays in Iranian talks triggered what was shaping up as a major stagflationary shock for world markets.
The euro extended its slide, hitting parity against the safe haven Swiss franc, and commodities of all stripes were on the rise as the Russian-Ukraine conflict showed no sign of cooling.
Russia calls the campaign it launched on Feb. 24 a "special military operation", saying it has no plans to occupy Ukraine.
Brent was quoted US$12.73 higher at $130.84, while U.S. crude rose $9.92 to $125.60.
That will act as a tax on consumers and the potential blow to global economic growth saw S&P 500 stock futures drop 1.4%, while Nasdaq futures shed 1.9%. U.S. 10-year bond yields also dropped to their lowest since early January.
Japan's Nikkei sank 1.9%, while MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.3%.
Having climbed 21% last week, Brent crude was further energised by the risk of a ban of Russian oil by the United States and Europe. - Reuters
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