Prices for oil rose Tuesday as Russia imposed sanctions on Ukraine’s capital.

Last Thursday’s invasion of Ukraine saw prices rise to $100 for the first time. This prompted fears about supply disruptions by Russia, a key exporter in a market already very competitive.

West Texas Intermediate crude futuresThe U.S. benchmark for oil rose 5.7% and traded at $101.17 a barrel.

International benchmark Brent crudeThe barrel traded at $104.16/barrel, up 6.3% Last week’s contract price rose 6.3% to $104.16 per barrel. This is the highest level since 2014.

Canada announced Monday that it would ban Russian oil imports. However, it is the only country to directly target Russia’s energy sector. It is possible that energy payments could be extended due to the financial sanctions placed by America and its allies.

However, ripple effects already show. JPMorgan Tuesday said in a note that key European financial institutions have begun to reduce financing for commodity trade houses. Chinese banks are following suit.” According to the company, “current oil price differences are a reflection of a clear unwillingness for Russia crude.”

The global oil market was tightening ahead of Russia’s invasion of Ukraine. While demand has rebounded, supply remains constrained. OPEC will be meeting this week with its oil-producing partners, including Russia, to discuss April’s output.

In the meantime, Tuesday’s meeting of International Energy Agency will be “extraordinary”. It will discuss “Russia’s invasion in Ukraine’s oil supplies and how IEA member can help stabilize energy markets,” Fatih Birol, executive director of IEA said in a Twitter.

Morgan Stanley raised its short-term oil price predictions on Tuesday. It stated that the Ukraine events have created an “risk premium” in oil prices which will likely remain for at least the next few months.

According to the firm, “Against the backdrop of market tightness even small disruptions may have major price impacts.”

Morgan Stanley expects Brent to average $110 in quarter two, an increase of $100 from its prior forecast. Prices will rise to $125 per barrel under the bull case of Morgan Stanley.

Goldman Sachs stated Sunday that the demand for destruction was the last “significant remaining balance mechanism.”

Americans are already feeling the impact of high oil prices. On Tuesday, the national average cost of a gallon gas was $3.619, which is 24 cents higher than a month ago.