Oil jumps after Putin orders partial mobilization of troops

Oil rallied after Russian President Vladimir Putin ordered a partial mobilization to hold onto occupied territories in Ukraine, an escalation that could lead to further disruption to energy supplies.

West Texas Intermediate surged toward US$87 a barrel, adding as much as 3.2 per cent. Russia will take necessary steps to defend its sovereignty and will defend territory with all available means, Putin said as he announced a partial mobilization of the country’s population. 

The move threatened to escalate the conflict further after the Kremlin has moved to stage sham votes on annexing the regions of Ukraine it still controls.

The growing tension comes ahead of a decision by the Federal Reserve on monetary policy later on Wednesday. The central bank is expected to raise interest rates by 75 basis points, and put numbers on the “pain” it’s been warning of when it publishes new economic projections.