Oil and natural gas prices rose by 9%
Immediately after the Russian President Vladimir Putin ordered his country’s military reservists to mobilize and threatened a nuclear response in Ukraine.
Russia has already cut natural gas flows by pipeline to Europe by about 80%.
Tweet on global crude benchmark, after Putin’s hostile rhetoric on war
Oil & gas prices rose, after Russian President Vladimir Putin ordered his country's military reservists to mobilize and threatened a nuclear response in Ukraine.
— The_Journalbiz (@the_journalbiz) September 21, 2022
Russian president Vladimir Putin addressed the nation Wednesday, announcing a mobilization of reserve troops in the Ukraine conflict.
The escalation raises the risk that supplies could be cut even further and for longer after Putin’s announcement, the euro was 0.7% weaker against the dollar, falling below parity.
- Global crude benchmark Brent climbed as high as $93.53, adding about 3%.
- A benchmark European natural gas futures contract rose nearly 9%.
European government bonds rallied. The 10-year German bund yield declined to 1.864% from 1.940% the day before, reversing direction after three days of rises
Euro slides and dollar climbs to 20-year high after Putin hints Russia is ready to use nuclear weapons and mobilizes troops for Ukraine
The euro fell as low as $0.9885 Wednesday after President Vladimir Putin said Moscow will call up more troops.
Putin said Russia has “lots of weapons to reply” to nuclear blackmail by Western allies.
The dollar, seen as a safe-haven asset, climbed to a two-decade high after Putin’s televised address, the dollar is typically seen as a safe-haven asset by investors and tends to strengthen when geopolitical unrest weighs on market sentiment for risk.