Ukraine-Russia tensions: Oil surges on supply fears

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.

Russia ordered troops into two rebel-held regions in Ukraine's east after it recognised 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 on 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. 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.