Global Markets Slump As The US Bans Russian Oil, Gold Rises

The US imposes a ban on Russian oil

President Joe Biden of the United States put a ban on Russian oil and gas imports on Tuesday, ratcheting up the pressure on Vladimir Putin after his invasion of Ukraine late last month.

The UK likewise made a similar action, announcing that it will begin reducing its imports of Russian oil and associated items. By the end of the year, Britain is projected to have phased out all Russia-related oil imports.

According to one analyst, a ban on Russian oil by the EU would be a significant blow.

While the US and UK actions are substantial, one geopolitical risk expert told Reuters that the EU ban would be the most severe blow to Russia.

According to the researcher, Europe is "relatively reliant on Russian energy supply," and a complete exit from the alliance would mean economic devastation for the nation.

However, as President Biden emphasized, the choices are not free as energy prices continue to rise and everyday people feel the pinch at the pump.

The news of the Russian oil ban boosted oil prices, with worldwide benchmark Brent crude reaching highs of more than $131 per barrel.

The West Texas Intermediate (WTI) crude oil price increased more than 7% in response to Biden's remarks, breaking beyond the $130 per barrel barrier. However, the US benchmark's surge to a 13-year high was short-lived, with the market closing at roughly $123 a barrel.

Gold continues its run, as nickel reaches $100,000 per ton.

Gold prices surged to session highs earlier in the afternoon as investors sought refuge in the precious metal. Due to the widespread risk-off mentality, spot gold increased more than 3% to $2,069.89 per ounce. Gold reached an all-time high of $2,072.50 in August 2020.

In other market news, nickel prices reached $100,000 a ton on Tuesday, prompting the London Metal Exchange (LME) to stop trading due to claims of short-covering by one of the world's biggest nickel producers.