By Gina Lee

Investing.com – Oil was down on Monday morning in Asia but tensions in Ukraine and a hold up in Iran’s nuclear deal discussions cast a long shadow.

The stock market fell 0.5% to $90.85 at 10:10 pm ET (3:30 AM GMT) then declined 0.64% to $89.63

According to three sources close to the subject, the U.S. thinks that Russia would invade Ukraine and target several cities other than the capital Kyiv. Moscow claimed that it would maintain its troops in Belarus for indefinite time, in spite of repeated denies about an invasion.

In the interim, negotiations in Vienna with Iran rekindle the 2015 nuclear agreement have reached an impasse despite Germany’s chancellor cautioning that it’s now or never to save the accord. More supplies would be possible from Iran if a deal is reached.

The price of crude oil jumped to its highest point since 2014. The rising tensions surrounding the Ukraine crisis are due to rising global demand and supply disruptions. Stockpiles have also been declining. The possibility of a Russian invasion, and retaliatory U.S. sanction could cause disruption to global energy supplies.

With that in mind, oil prices could set fresh demand records this year for a “prolonged period” above $100 a barrel over the next six to nine months, Vitol Group Chief Executive Officer Russell Hardy told Bloomberg. This would increase global inflationary pressures, as the leading economies recover from the pandemic.