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Highlights:
- The move comes after Russia had reportedly amassed troops of 150,000-200,000 soldiers along the borders of Ukraine.
- For the first time since 2014, the Brent Crude oil index reportedly crossed the US$ 100-mark per barrel.
- Mr Biden said that the Russian President chose the option of a premeditated war.
After weeks of escalating tensions between Russia and Ukraine, Vladimir Putin reportedly announced a military operation in Ukraine on February 24.
Some reports suggest that explosions were heard across Ukraine, and it seems a full-scale invasion could be underway. The move comes after Russia had reportedly amassed troops of 150,000-200,000 soldiers along the borders of Ukraine.
Notably, it was earlier reported that Kremlin revealed that rebel leaders in eastern parts of Ukraine were asking Moscow for military help against Kyiv.
Following the reports of an attack on Ukraine, The White House released a statement from US President Joe Biden, which stated that the attack on Ukraine was unprovoked and unjustified.
Also Read: Can Russia-Ukraine unrest impact Canadian & world stock markets?
Mr Biden said that the Russian President chose the option of a premeditated war. On Twitter, President Biden wrote that he would meet leaders of the G7 countries and allies of the United States to impose severe sanctions on Russia.
Soon after reports of military action surfaced, the global financial markets were affected negatively. That said, let's look at the impact of the crisis on some sectors:
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Oil prices climb with escalating tensions
For the first time since 2014, the Brent Crude oil index reportedly crossed the US$ 100-mark per barrel as the Russian President declared military action against Ukraine.
At the time of writing, the Brent Crude oil index was up 5.3 per cent and was trading at US$ 99 per barrel. Meanwhile, the Crude Oil WTI was up 5.4 per cent at US$ 97.1 per barrel.
Over the past two months, oil prices have increased as the crisis between Russia and Ukraine deepened. Since the early-December lows, the oil prices have apparently jumped 40 per cent.
Gold prices jump
During times of crisis, gold is considered a safe haven. Some investors view gold as a store of value, and as the price of precious metal has historically increased, it remains among the top form of investments.
On February 24, gold prices climbed more than two per cent to their highest since the past year. At the time of writing, Gold Futures were up about two per cent to US$ 1,943.5 per ounce.
Bottom line
Amid rising tensions, the Canadian equities markets had opened lower on Wednesday, and trends from global markets indicate that the equities market could witness a rough patch in the coming days.
At close on February 23, the S&P/TSX Composite Index was down 0.8 per cent to 20,744.17 points. The biggest decline came in the healthcare sector as it dipped 2.3 per cent, followed by the information technology sector (-2.1 per cent).
Also Read: Cenovus Energy (TSX:CVE) stock up after Russia send troops into Ukraine
