News - Middle East: The euro and the US dollar are worth the same for the first time in two decades, as the official currency of most of the European Union (EU) members has sunk to a record law, amid the war in Ukraine.

The euro hit $1 on Tuesday, down about 12% since the start of the year.

The last time the two currencies were equal in value was 2002, when the euro was in its infancy.

Not all European countries use the euro as their official currency. It is the currency of 19 out of the 27 EU members. Bulgaria, Croatia, Czechia, Hungary, Poland, Romania, Sweden, and Denmark are not using euro as their official currency.

The European Union, which used to receive roughly 40% of its gas through Russian pipelines, has been struggling with high inflation and energy supply uncertainty since Ukraine was invaded by Russia. The energy crisis, which comes alongside an economic slowdown, has raised fears of recession in the bloc.

Analysts have previously warned that the Western sanctions against Russia, in response to the war in Ukraine, could lead to high inflation and other forms of economic recession that would affect not only Russia but the entire global financial system.

The US placed an embargo on Russian oil earlier this year, shortly after Russian President Vladimir Putin declared the military campaign against Ukraine on February 24. In addition to the oil embargo, Washington and its Western allies have imposed unprecedented waves of sanctions on Moscow.

Russia has warned against the sanctions, describing them as a double-edged sword.