Oil and gas prices are climbing on fears that the Ukraine-Russia crisis will disrupt supplies across the world,
BBC reports.
The price of Brent crude, an international benchmark, reached a seven-year high of $99.38 (£73) a barrel on Tuesday.
The RAC motoring group warned that rising crude oil prices would hit UK petrol prices.
Russia ordered troops into two rebel-held regions in Ukraine's east after it recognized them as independent states.
In London, the FTSE 100 share index opened more than 1.4% lower before regaining ground and turning positive.
But Asian stock markets closed lower, and US stock exchanges were braced for losses.
Maike Currie, an investment director at Fidelity International, said oil could go above $100 a barrel due to a combination of the Ukraine crisis, a cold winter in the US, and a lack of investment in oil and gas supplies around the world.
"Russia accounts for one in every 10 barrels of oil consumed globally, so it is a major player when it comes to the price of oil, and of course, it's really going to hurt consumers at the petrol pumps," she said.
The RAC said average UK pump prices for petrol reached a new high of 149.12p a litre on Sunday, before slipping falling back to 149.03p on Monday.
The average diesel price hit 152.51p a litre on Monday, just below Sunday's record 152.58p.
"Russia's decision to invade Ukraine is already causing oil prices to rise and will undoubtedly send fuel prices inexorably higher towards the grim milestone of £1.50 a litre," said RAC fuel spokesman Simon Williams.
"This spells bad news for drivers in the UK struggling to afford to put fuel in their cars.
"With retailers quick to pass on any wholesale price rises they experience, we could sadly see the average price of unleaded hit 150p in the next few days and diesel approaching 154p."
