Russia’s military presence in Ukraine is being blamed for a spike in oil prices, as Boris Johnson admitted that it could cause problems at a time where oil and gas prices have already been soaring. Brent crude prices, the global benchmark, increased by almost four percent to over $99 per barrel, as some economists predict prices could reach $140 if the crisis continues to escalate.
However, later on Tuesday afternoon prices had dropped back down to $96.56 as Putin assured the supply of Russian oil and gas would continue.
The worry comes as Germany ordered the Nord Stream 2 pipeline between Russia and Germany be halted as part of sanctions against Putin.
The European Union is dependent on Russia for a significant portion of its oil and gas supplies.
While the UK does not have any direct connections to Russia, it does have links to Europe and the prices are “closely correlated”, according to The Times.
Russia has warned that Europe will face a “brave new world” in retaliation, as gas prices could soar to record levels.
Mr Johnson responded to a question from MP Robert Halfon about the risks of rising prices in the Commons on Tuesday.
The PM said: “He is quite right that one of the risks of Putin’s venture is that there could be a spike in gas prices, in oil prices.
The energy price cap is set to rise in April by 54 percent because of increasing wholesale prices.
Chancellor Rishi Sunak has offered a £9 million package to help offset the price rise, but has left open the possibility for further intervention.
The cost of living crisis is already hitting families hard, with fears that this could plunge millions of households into fuel poverty.