MELBOURNE, (Reuters) – Oil prices jumped over $7 on Monday morning after Russian President Vladimir Putin placed the country’s nuclear defense on alert to counter the Western countries and Japan’s increased sanctions on Russian banks.

Fears that Russia will cut off oil supply from its second-largest supplier of crude have been raised by the bank payment restrictions and nuclear alert.

After hitting an all-time high of $105.07/barrel shortly after opening trade, futures rose 5.6% or $5.46 to $103.39 GMT. After the invasion, the benchmark contract reached an all-time high of $105.79 last week.

U.S. West Texas Intermediate oil futures (WTI), were at $97.23 an ounce, up 5.64 percent, or 6.2%. They had reached a high of 99.10 within minutes. WTI reached a record high of $100.54 this week.

Putin intensified the tensions Sunday by placing Russia’s “deterrence troops” (which wield nukes) on high alert. This was citing NATO leaderrs aggressive remarks and the a variety of economic sanctions placed on Russia by Western countries.

President Putin’s move to place Russian nuclear forces under high alert is an alarming escalation which can only support oil prices. Stephen Brennock, an oil broker at PVM said that he believes we might be in for price fireworks early in the morning.