Oil prices near $100 a barrel and stocks sink as Ukraine crisis deepens

Oil prices surged nearly 5% and stock prices dropped after Russian President Vladimir Putin recognized the independence of rebel-held regions of Ukraine, raising fears that a full-scale invasion was near.

Russia is a major energy producer and the tensions over Ukraine have brought wide swings in volatile energy prices — on top of the inevitable risks of a broader conflict which would pull down economic activity across Europe and globally.

Oil prices had already risen to their highest level since 2014. By early Tuesday, the advance of U.S. benchmark crude oil had abated slightly. It was up about $3, or 3.5%, to about $94 per barrel in electronic trading on the New York Mercantile Exchange. The price of Brent crude, the standard for international oils, gained about $4.50, or nearly 5%, to hit about $98 per barrel.