News - Middle East: Russia’s military operation in Ukraine’s Donbass region has raised the world oil prices to over $100 per barrel for the first time in more than seven years, also causing the price of wheat to break its previous record high across Europe.

Oil prices jumped on Thursday, with Brent rising above $105 a barrel for the first time since 2014, after the Russian operation in Ukraine intensified concerns about disruptions to global energy supply.

Russia launched the operation in Ukraine by land, air and sea in the biggest attack by one state against another in Europe since World War II.

The United States and Europe have promised the toughest sanctions on Russia in response.

"If sanctions affect payment transactions, Russian banks and possibly also the insurance that covers Russian oil and gas deliveries, supply outages cannot be excluded," Commerzbank analyst Carsten Fritsch said.

At least three major buyers of Russian oil were unable to open letters of credit from Western banks to cover purchases on Thursday, sources told Reuters.

Brent crude was up $7.26, or 7.5%, at $104.10 a barrel as of 1437 GMT, having touched a high of $105.79. US West Texas Intermediate (WTI) crude jumped $6.63, or 7.2%, to $98.73.

Brent and WTI hit their highest since August and July 2014 respectively.

"Russia is the third-largest oil producer and second-largest oil exporter. Given low inventories and dwindling spare capacity, the oil market cannot afford large supply disruptions," UBS analyst Giovanni Staunovo said.

"Supply concerns may also spur oil stockpiling activity, which supports prices."

Russia is also the largest provider of natural gas to Europe, providing about 35% of its supply.