A Russian invasion of Ukraine could spark a “domino effect” which would send petrol and energy prices spiralling out of control in the UK, an expert has warned.
Mike Owens, UK Sales Trader at Saxo Markets, said: “The worrying potential of an imminent Russian invasion of Ukraine has spooked the markets on opening today as investors now sit tight and await further news.
“The FTSE is currently down almost two percent today from last week’s two-year high, while oil prices have jumped to fresh heights and European natural gas jumped 14 percent as a fallout of the looming conflict.
“Over the weekend, talks between Biden and Putin failed to calm tensions, creating worries about the impact on global supplies should exports from one of the world’s largest exporters be impacted by the conflict.
“Despite the UK only receiving around three percent of its gas supply from Russia, due to Europe’s integrated energy markets, military conflict would still cause a domino effect that would end up affecting Britain financially if Russian exports were to be weaponised.
“Until tensions ease, energy prices will likely stay elevated with a risk of spiking further, meaning more bad news for the consumer with petrol prices being driven even higher in the short term and energy bills rising again, adding to the UK’s already concerning cost of living crisis.”