European markets open sharply lower as oil prices surge

The sell-off follows big losses in Asia

European markets have opened sharply lower after oil prices surged to the highest level in 13 years. In the opening minutes of trade the German Dax fell more than 3% and the French CAC 40 is down nearly 3%. The UK FTSE 100 was around 0.5% lower. 

The sell-off follows big losses in Asia. Hong Kong's Hang Seng Index sank as much as 5% in morning trading. It was last down 3.4%, on track to log its worst daily drop in seven months. Japan's Nikkei 225 tumbled 3.6%. South Korea's Kospi dropped 2.5%. China's Shanghai Composite lost 1%.

On the US market, Dow futures fell 450 points, or 1.3%. S&P 500 and Nasdaq futures were down 1.6% and 2% respectively.

The latest turmoil came as US crude futures surged more than 7% to trade at $124.17 a barrel, the highest level since August 2008. Brent crude also rose to the highest level since 2008, up 8% to $127.66 a barrel.

Qazet.az informs that oil prices soared further after US Secretary of State Antony Blinken said Sunday in an interview with CNN that the United States is working with its allies in Europe to look into the possibility of banning Russian oil imports in an effort to further punish the country.