Conflict in Ukraine: Oil prices rise to the highest level since 2008

Oil prices rose to their highest level since July 2008 after the United States said it was discussing a possible ban on Russian supplies to other countries.

Brent crude, the global oil index, jumped above $139 a barrel before falling to around $130. Energy markets have been rocked in recent days oversupply concerns sparked by Russia's invasion of Ukraine.

On Sunday, US Secretary of State Anthony Blinken said the Biden administration and its allies discussed a ban on Russian oil supplies. Nancy Pelosi, leader of the US House of Representatives, later said the chamber was "studying" the law banning imports of Russian oil. This week, Congress intended to award Ukraine $10 billion (£7.6 billion) in response to Russia's military invasion.

"The House of Representatives is currently considering tough legislation that would further isolate Russia from the global economy," Pelosi said in a letter.

The Russian oil embargo would be a significant escalation in response to an invasion of Ukraine and potentially substantial impact on the global economy.

"While the United States only imposed a ban on imports of Russian oil, Europe was able to do the same. The bigger concern is that [Russian leader Vladimir] Putin could turn his back on the wall with gas supplies to Europe and the continent's energy bailout cut off," Vandana Hari of oil market analysis firm Vanda Insights told the News.

Consumers worldwide have seen a spike in costs in recent days as they feel the impact of rising wholesale energy prices. On Sunday, the American Automobile Association said gasoline prices in the United States rose 11% last week to their highest level since July 2008.

Gasoline and diesel prices in the UK have risen to an average of 153 and 157 pence per liter, respectively. But James Spencer, chief executive of fuel supply company Portland Fuel, said the bad news would keep coming, and prices would continue to rise.

"Even if we do manage to get additional supplies into the market, nothing will happen shortly," he told Today. "I'm afraid we'll see prices over £1.70 to £1.75 per liter."

He said individual motorists have several opportunities to reduce their consumption by driving less. But companies with no alternatives are starting to feel the tension, said Mr. Spencer.