U.S. stocks plummeted and oil prices jumped Thursday as Russia invaded Ukraine, causing unease in the global economy.
Major indexes on Wall Street took a dive before recovering some of their losses amid a tumultuous day in eastern Europe. The Dow Jones was down 670 points, or 2%, in lunchtime trading while S&P 500 dropped 1%, and Nasdaq 100 was down less than a point.
The Brent Crude oil index, a global benchmark, reached $105 per barrel by early Thursday. It last traded above $100 per barrel in 2014.
European markets tumbled between 3% in London and 5% in Germany while Asian markets saw drops from 1% to 3%.
Russia’s markets bottomed out, losing 45%, and the ruble dropped to a record low against the dollar.”
Kremlin spokesman Dmitry Peskov said the “emotional” reaction within the markets was inevitable but that the country had tools to stabilize the situation,
SEE ALSO: Russia attacks Ukraine from air, land; West condemns Putin; Zelenskyy declares martial law
The economic shocks are rippling out after Russia on Thursday launched a massive, coordinated attack on Ukraine, with Russian jets reportedly hitting major Ukrainian cities and ground forces crossing into Ukrainian territory on multiple fronts.
“Russia alone is responsible for the death and destruction this attack will bring, and the United States and its allies and partners will respond in a united and decisive way,” President Biden said. “The world will hold Russia accountable.”
Congressional lawmakers weighed in overnight, with some drafting ways to hold Moscow accountable and others pointing to the potential ramifications on energy prices for Americans and allies.
“How many times will Democrats fail to recognize that the instability of world affairs and economic shocks come at the hands of dictators who fuel their terror on the world stage with dollars we and our allies are forced to spend on their oil and gas exports?” Rep. Lauren Boebert, Colorado Republican, said. “It’s time to be smarter than the dictators. I call on this administration and my colleagues in the United States Congress to immediately unleash our national energy production capabilities.”
Germany this week halted the Nord Stream 2 pipeline that would have dramatically increased the flow of Russian gas to western Europe. It was the first major sign that Russian aggression would result in difficult economic tradeoffs for countries that rely on Russian resources.
“Welcome to a new world where Europeans will soon pay 2,000 euros for a thousand cubic meters of gas!” tweeted former Russian President Dmitry Medvedev, who is deputy chairman of the Security Council of Russia.
President Ursula von der Leyen said Thursday the European Union would ensure that Russia is the one that pays a hefty price.
“Russia’s economy has already faced intensified pressure. These pressures will now accumulate,” she tweeted. “Our measures will weaken Russia’s technological position in key areas, from which the elite makes most of their money.”
• Ben Wolfgang contributed to this report.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
Please read our comment policy before commenting.