This morning prices are lower following a strong United States dollar that hit a two-week high this morning, and possible increases to interest rates by the Federal Reserve. However, the Russia/Ukraine border situation seems to be getting more ominous and gaining more national attention as more and more troops make their way to the border from both sides.
As the situation and tension in the East continue to build, NATO is stepping in for the first time by having their forces on standby alert. Along with troops on the ground, the alliance has sent both ships and planes to the region to strengthen the eastern defenses they have in place to try and prevent a Russian attack. The situation has also become more real for many who work in politics. The United Kingdom withdrew its embassy staff in Kyiv, Ukraine, this morning. One fear from many world powers is that Russia may already be beginning the early stages of an invasion with operatives inside Ukraine ready to cause an “incident” before initiating any attack. Russia has long been known to infiltrate regions that they plan to attack ahead of time and cause disturbances. Still, something that was speculation has now become “very credible,” according to the U.S. government.
Along with the United Kingdom, the United States has required all U.S. diplomats and their families in Ukraine to leave immediately as the United States plans on what they will do to counter the Russian troop movements in the area. Historically having a robust diplomatic presence in Russia that did not waver, with the Americans now pulling out of Ukraine, it is a telling sign that the world may be bracing for an aggressive move by Russia even though the Kremlin continues to deny reports that they plan to move into Ukrainian territory. This week will be especially important as we begin to see the next steps of the situation and if the United States decides to become directly involved. With tensions in Ukraine and the Middle East involving both Russia and the United Arab Emirates, two critical members of OPEC+, it’s no coincidence we are seeing interesting movements as of late in the markets.