HONG KONG, Feb 24, 2022 (BSS/AFP) - Oil prices soared past $100 for the
first time in more than seven years on Thursday after Russian President
Vladimir Putin announced a "military operation" in Ukraine, apparently
realising fears he would invade.

  Brent surged to $100.04 a barrel after the announcement, as concerns grew
about a full-scale conflict in eastern Europe. WTI hit $95.54.

  It came after Putin made a surprise statement on television to declare his
intentions.

  "I have made the decision of a military operation," he said shortly before
6:00am (0300 GMT) in Moscow. as he vowed retaliation against anyone who
interfered.

  He also called on the Ukrainian military to lay down its arms.

  His statement came after the Kremlin said rebel leaders in eastern Ukraine
had asked Moscow for military help against Kyiv.

  US officials had warned of an imminent incursion by Russia after the
Kremlin this week recognised two breakaway regions in Ukraine and said it
would provide "peacekeepers".

  Fears of a move were ramped up after separatists called for help to repel
Ukraine forces.

  The threat of a conflagration has fanned concerns over supplies of key
commodities including wheat and metals just as demand rallies owing to the
reopening of economies after pandemic lockdowns.

  Crucially, oil has soared in recent weeks and on Thursday world benchmark
Brent finally broke the $100 mark last seen in September 2014.

  "Russia/Ukraine tensions bring both a possible demand shock (for Europe),
and more importantly a much larger supply shock for the rest of the world
given the importance of Russia and Ukraine to energy, hard commodities and
soft commodities," said National Australia Bank's Tapas Strickland.

  The crisis comes as governments struggle to contain runaway inflation
fuelled by demand as life returns after recent lockdowns, with many fearing
the fragile global economic recovery could be knocked off course.