Russia-Ukraine crisis: Oil prices surge, Sensex tanks 1000 points, Nifty tumbles by 300 points

New Delhi, Feb 22: The escalating crisis between Ukraine and Russia has worsened soon after Putin signed a decree and recognised the independence of two separatist regions in eastern Ukraine. The reflection of this decision has been seen in oil prices, which have jumped more than $2 to a fresh seven-year high on Tuesday. Rising tensions have sent jitters through markets, driving oil prices higher.

As per the reports, yesterday, Russian President Vladimir Putin has ordered his Defense Ministry to send Russian troops into eastern Ukraine's two breakaway regions. It comes just hours after Putin signed the decree stating Moscow now recognizes the "independence" of the self-proclaimed "Donetsk People's Republic" (DPR) and the "Luhansk People's Republic" (LPR).

The Kremlin said Putin ordered the Russian forces to "maintain peace" in eastern Ukraine. The decree did not specify when any such deployment would take place. However, the move raises tensions, as Western leaders have warned Moscow could use a skirmish in the restive region as an excuse for a larger Russian attack.

Following Brent crude futures rose $2.10, or 2.2 percent, to $97.49 a barrel at 0702 IST, adding to a 2 percent gain on Monday. Earlier on Tuesday, it hit $97.66, its highest since Sept. 2014. US West Texas Intermediate (WTI) crude futures jumped $3.25, or 3.6 percent, to $94.32 a barrel versus Friday's settlement. The US market was closed on Monday for a public holiday.

Apart from it, the BSE benchmark Sensex tanked over 1,000 points and the NSE Nifty fell below the key 17,000-level in the opening hours on Tuesday. The Sensex was trading 1,015 points or 1.76 per cent lower at 56,668.60 on Tuesday morning at around 10 AM. Meanwhile, the Nifty quoted 285.40 points or 1.66 per cent lower at 16,921.25, extending the exchanges’ losses to the fifth session in a row. All the 30 Sensex constituents were trading at significant losses when the market opened.