Oil and gas prices are climbing on fears that the Ukraine-Russia crisis will disrupt supplies across the world.
The price of Brent crude, an international benchmark, reached a seven-year high of $99.38 (£73) a barrel on Tuesday.
The RAC motoring group warned that rising crude oil prices would hit UK petrol prices.
Russia ordered troops into two rebel-held regions in Ukraine's east after it recognized them as independent states.
In London, the FTSE 100 share index opened more than 1.4% lower before regaining some ground.
Asian stock markets closed lower, and US stock exchanges were braced for losses.
The UK and several western allies have threatened sanctions against Russia, which is the second-largest oil exporter after Saudi Arabia. Russia is also the world's top producer of natural gas.
Russia has said its troops will engage in "peacekeeping" in the self-declared Donetsk and Luhansk people's republics.
But the US has said calling them peacekeepers is "nonsense", and that Russia is creating a pretext for war.
'Major player'
The Ukraine-Russia crisis could have "substantial implications" on oil prices, which have jumped more than 10% since the start of the month, said Sue Trinh of Manulife Investment Management.
Sanctions forcing Russia to supply less crude or natural gas would have "important impact on the global economy", she added.
Maike Currie, an investment director at Fidelity International, said oil could go above $100 a barrel due to a combination of the Ukraine crisis, a cold winter in the US, and a lack of investment in oil and gas supplies around the world.
"Russia accounts for one in every 10 barrels of oil consumed globally, so it is a major player when it comes to the price of oil, and of course, it's really going to hurt consumers at the petrol pumps," she said.
There have been US and EU sanctions on Russia for a number of years, which has had a "massive impact" on the Russian economy.
Sanctions are likely to be "deepened", Ms Currie said, including sanctions on financial institutions, technology such as chips, and individuals.
Most of the oil and gas that the UK imports do not come from Russia, but if Russian supplies are constricted, wholesale prices are likely to rise around the world.
This could drive up already high inflation rates in the UK and elsewhere, economists said.
Petrol price spike
The RAC said average pump prices for petrol reached a new high of 149.12p a litre on Sunday, before slipping falling back to 149.03p on Monday.
The average diesel price hit 152.51p a litre on Monday, just below Sunday's record 152.58p.
"Russia's decision to invade Ukraine is already causing oil prices to rise and will undoubtedly send fuel prices inexorably higher towards the grim milestone of £1.50 a litre," said RAC fuel spokesman Simon Williams.
"This spells bad news for drivers in the UK struggling to afford to put fuel in their cars.
"With retailers quick to pass on any wholesale price rises they experience, we could sadly see the average price of unleaded hit 150p in the next few days and diesel approaching 154p."
Source: BBC
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Yes, that's true but it's like discovery of oil in Ghana is more of a curse than a blessing. How come God almighty have given us all we need, i.e. Cocoa, gold, timber, bauxite, manganese, oil, fertile lands, the sea, two harbours, sand, gravel, stones, gas, a relatively small population compred to others who can't boast of what we have and yet we are struggling. Today a gallon of petrol is going for GHC 36.00 in a country that claims to have oil. You can't see the benefits of these resources reflecting in the life of the people except a few political vampires. Question, where did we go wrong. Unfortunately in Ghana those with ideas don't have power, those with power have no idea at all, with all these including domestic tax revenue, assemblies common fund, Getfund, road fund, health insurance fund are all in arrears. To the extent that the Ghana revenue authority keeps telling us they have exceeded their targets and yet budgetery allocations to MDA,s can't even be paid, you give a whole department with about 10 official vehicles GHC 5,000.00 for fuel and lubricants for a whole year and expect the department to Carry out its mandate when one vehicles fuel tank can consume GHC 800.00 fuel if you are to fill the tank. So currently the departments are only existing on paper. The same greedy politicians will sit and say Ghana's civil service is unproductive. It's like sending a carpenter to work on your house, meanwhile you have not provided roofing sheets, nails, and at the end of the day you have to pay, who are you deceiving, why won't your house get soaked when it rains. Now E-levy has become the panacea, if a whole buffalo's meat can't satisfy you, you think rat meat can? No it can't. Bet me until the twin brothers, NDC and NPP are dead, Ghana is doomed.