Oil prices surged sharply again on Tuesday following U.S. President Joe Biden's announcement to ban imports of crude oil from Russia in response to its attack on neighboring Ukraine. In a speech delivered at the White House, Biden stated, "We will ban all imports of oil, gas, and energy. This means that Russian oil will no longer be accepted at U.S. ports, and the American people will deliver another powerful blow to Putin," adding that the ban was made "in close coordination" with allies.
U.S. crude prices jumped by 5% to $125 a barrel, and it is expected that prices will continue to rise at an "unprecedented" level. Oil prices reached their highest levels since 2008, due to delays in the potential return of Iranian crude to global markets, while the U.S. and its European allies considered banning Russian imports. This led to a rise in energy stock prices on Wall Street, although most other sectors experienced declines as investors worried about the potential effects of the war on global economies, particularly inflation. The S&P 500 index rose by 0.3% after fluctuating between slight gains and losses shortly after the opening bell.
