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As the Ukraine war and its economic repercussions intensify, stocks veered their way.

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As the Ukraine war and its economic repercussions intensify, stocks veered their way.

“We are now in very active discussions with our European partners about imposing sanctions on imports of Russian oil into our countries, while of course, at the same time, maintaining a stable global supply of oil,” said Mr. Blinken. said on “Meat” on Sunday. Press” on NBC.

A sharp drop in the supply of oil and natural gas from Russia will cause major problems for both industrial users and consumers. Cutting Russian oil would force many of the refineries that normally process it to find other sources.

Although oil is a relatively flexible commodity, there are many grades of crude oil, and a refiner may not always substitute one for the other. For example, Washington’s sanctions on Venezuelan crude prompted refiners in the United States to buy more Russian oil as an alternative, raising import levels. On Saturday, Europe’s largest oil company, Shell, said it had bought Russian crude because “supply from alternative sources did not arrive in time to avoid market supply disruptions.”

Investors were already nervous about inflation, which is at its highest in decades in the United States and Europe, as the pandemic left factories and supply chains shut.

Economists expect the Consumer Price Index to show Thursday that prices in the United States have risen 7.9 percent in the year through February. And that reading was taken before the effects of the war were really felt. For example, gas prices hit their highest level since 2008 in the United States on Monday: $4.06 per gallon, up 45 cents from a week earlier, according to AAA.

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Central banks have begun to move aggressively to raise interest rates as they shift their focus from supporting economic growth to combating inflation. The end of easy money and the lure of higher rates – which make riskier investments less attractive – had already caused stocks to fall even before Russia’s invasion.

But the financial repercussions of the war are affecting Europe the most. Natural gas is less flexible than oil, and Europe is heavily dependent on it as a fuel. Natural gas prices in Europe were already several times higher than a year ago and are rising even higher, touching €345 per megawatt-hour on Monday before falling back to €215, a gain of 11.7 percent. .

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