Asian stock markets have plunged and oil prices surged after President Vladimir Putin announced Russian military action in Ukraine.

Market benchmarks in Tokyo and Seoul fell 2% and Hong Kong and Sydney lost more than 3% Thursday. Oil prices jumped nearly $3 per barrel on unease about possible disruption of Russian supplies.

Earlier, Wall Street’s benchmark S&P 500 index fell 1.8% to an eight-month low after the Kremlin said separatists in eastern Ukraine asked for military assistance.

Investors already were uneasy about the possible impact of the Federal Reserve’s plans to try to cool inflation by withdrawing ultra-low interest rates and other stimulus that boosted share prices.

Source: AP