Prices for commodities ranging from oil to grains spiked higher after Russian missiles landed in Poland, raising the prospect of a widening military conflict in Europe.
West Texas Intermediate (WTI) crude oil, the American standard, rose 3.3% to $87 U.S. per barrel on media reports that Russia’s war in Ukraine may be spilling across the border into Poland.
Brent crude oil, the international benchmark, rose to $93.86 U.S. a barrel.
Media reports say that two people were killed in Poland by Russian missiles. The potential escalation comes as Russia continues to shell Ukraine’s capital city of Kyiv.
At the same time, Hungarian energy company MOL said a power station that serves Europe’s largest oil pipeline was struck by artillery fire, stopping all deliveries.
Poland is a member of the NATO military alliance, whose doctrine is that an attack on one is an attack on all. As fellow NATO members, the U.S. and Canada could be drawn into the military conflict with Russia if it becomes clear that Poland is being attacked by Russian forces.
The White House in Washington, D.C. said that it is monitoring developments in Poland.
Crop futures jumped higher on concerns of a military escalation in Europe, and on mounting concerns that the war could hurt a deal that has allowed exports of grains from Ukraine.
Wheat prices rose 1.2% to $8.48 U.S. a bushel, while corn prices rose 1.5% and the price of soybeans gained 1.2%.
