The highly unpredictable nature of Russia’s threat against Ukraine has rippled across financial markets without much impact on stocks. But if Russia were to move its troops across the border, it could cause a major risk-off event — sending equities lower and commodity prices even higher.
The US plans on stinging sanctions if Russia moves into Ukraine. Russia, which says it has no intention to invade, could inflict pain on the rest of the world through its strong hold on some key commodities.
For now, the markets are not pricing any such calamity, but oil prices would spike and European gas prices could surge even more than they already have if Russian troops enter Ukraine.
Oil and some other commodity prices have already built in some premium, and Russian assets have been hit. CNBC