Stocks dropped and oil prices jumped by more than $5 per barrel on Thursday, as President Vladimir Putin initiated military action in Ukraine.

Prompting Washington and Europe to declare sanctions on Moscow that may roil the global economy.

Market benchmarks in Europe and Asia fell by as much as 4 percent.

As traders tried to figure out how large Putin’s incursion would be and the scale of Western retaliation.

Wall Street futures retreated by an unusually wide daily margin of 2.5 percent.

Brent crude oil briefly jumped above $100 per barrel in London for the first time since 2014.

As a result, of unease about possible disruption of supplies from Russia, the No. 3 producer.

Benchmark U.S. crude briefly surpassed $98 per barrel.

Along with, Wheat and corn prices have also risen.

The ruble has lost 7.5 percent of its value against the dollar.

Due to rising energy costs, financial markets are on a “run to safety” and may have to price in slower growth.

According to ING’s Chris Turner and Francesco Pesole.

The European Union’s 27-nation European Union planned “massive and targeted penalties” on Russia.

According to the president of the European Commission in Brussels.

Ursula von der Leyen stated, “We will hold President Putin accountable.”

As Europe awoke to news of explosions in the Ukrainian capital of Kyiv, the large city of Kharkiv, and other regions.

The FTSE 100 in London plummeted 2.5 percent to 7,311.69 in early trading. The Frankfurt DAX fell 4% to 14,047.18, while the CAC in Paris fell 3.6 percent to 6,537.32.

Wall Street’s prospects

Futures for the S& P 500 index and the Dow Jones Industrial Average on Wall Street were both down 2%.

This comes after the S& P 500 fell 1.8 percent to an eight-month low on Wednesday after the Kremlin stated separatists in eastern Ukraine had requested military support.

After recognizing some rebel-held territories as autonomous, Moscow dispatched troops to them.

Putin claimed that Russia had to protect civilians in eastern Ukraine, a pretext that Washington expected him to make to justify an invasion.

President Joe Biden condemned the attack as “unprovoked and unjustifiable,” and promised that Moscow would be held accountable.

Therefore, implying that Washington and its allies will retaliate with new penalties.

However, Putin accused them of turning a blind eye to Russia’s demand that Ukraine be barred from joining NATO.