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Economic impacts of war in Ukraine
What will be the economic impacts in the U.S. after Russia's invasion of Ukraine? FOX 5's Bob Barnard breaks it down.
Russian troops launched a wide-ranging attack on Ukraine on Thursday, disrupting and endangering countless lives, and beyond its human toll, the conflict looks set to send prices spiraling even higher at gasoline pumps and grocery stores around the world.
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Russia and Ukraine are major producers not only of energy products but also grains and various other commodities. War could upend global supplies, as could sanctions brought by the United States and other allies.
Oil prices on both sides of the Atlantic jumped toward or above $100 per barrel to their highest levels since 2014, up more than 6%. Wholesale prices also shot higher for heating oil, wheat and other commodities.
FOX 5's Bob Barnard reports gas prices in the DMV are well above the national average, which is $3.53 per gallon, according to AAA.
Because of rising tensions, prices have been going up in recent weeks. According to AAA, the price of a gallon of regular unleaded gas is up $0.21 in the last month and more than $1 since last February.
Increases in energy and food prices could amplify worries about inflation, which in January hit its hottest level in the United States in a couple generations, and what the Federal Reserve will do in turn to rein it in.
The Fed looks certain to remove the super-low interest rates that investors love, which also helped catapult financial markets and the economy out of their coronavirus-caused plunge. The only question has been how quickly and how aggressively the Fed will move.
The Nasdaq composite, which is full of big tech stocks, sank 1.5% and could close more than 20% below its record set on Nov. 19, 2021.
If it does, that’s something Wall Street calls a "bear market," something that hasn’t happened for the Nasdaq since the coronavirus first crashed the global economy.
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The Dow Jones Industrial Average fell 647 points, or 2%, to 32,490.
The Associated Press contributed to this reporting.