By Elizabeth Dilts Marshall

NEW YORK (Reuters) – Global share markets edged higher on Tuesday as oil prices climbed yet further, driven by the United States banning Russian oil and other energy imports over Moscow’s invasion of Ukraine.

U.S. President Joe Biden made the announcement on Tuesday, while Britain said it would phase out imports of Russian oil and oil products by the end of 2022.

Benchmark for May rose $8.06, or 6.5%, to $131.27 a barrel by 12:09 p.m. EST (1709 GMT) before paring gains to trade up 5.55% at $130.05 at 1:40 p.m. EST (1840 GMT).

Since its invasion of Ukraine on Feb. 24, Western sanctions have cut Russia off from international trade and financial markets.

Russia, which calls its actions a “special operation,” had warned that prices could surge to $300 a barrel and it might close the main gas pipeline to Germany if the West blocks oil imports over its invasion of Ukraine.

Jason McMann, head of geopolitical risk analysis at Morning Consult, called the U.S. ban noteworthy, but said the “real show-stopper” would be Europe banning Russian energy imports.

“Given Europe’s relatively high dependence on energy supplies from Russia, such a move, if it materializes, would have major economic and geopolitical ramifications,” he said.

In the absence of such a ban, markets reacted positively to the U.S. and Britain’s moves, reversing direction to edge slightly higher in midday trade.

The MSCI world equity index, which tracks shares in 50 countries, gained 0.08%.

The rose 219.74 points, or 0.67%, the gained 25.54 points, or 0.61%, and the added 146.53 points, or 1.14%, to 12,977.49. The was down 0.51%.

Solita Marcelli, chief investment officer in the Americas for UBS’s wealth management arm, said the increase in oil prices over the past week — the second biggest jump 30 years — is likely to stick, causing continued market volatility.

“The Russia-Ukraine war has driven oil prices up faster than we previously expected, but we continue to see a tight supply-demand balance for crude oil globally, even if the hostilities end and the geopolitical risk premium attached to crude declines,” Marcelli said.

rose 5.4% to $125.85 a barrel, while prices of safe-haven added 2.4% to $2,045.88 an ounce.

The London Metal Exchange (LME) halted nickel trading on Tuesday after prices doubled in just hours to a record $100,000 per ton, fueled by a race to cover short positions.

UBS Global Wealth Management recommended a neutral stance on equities and advised clients to hold commodities, energy stocks and the U.S. dollar as portfolio hedges in the short term.

The rally in oil and other commodities has heightened investor fears about global inflation. Data this week is expected to show the U.S. consumer price index climbed a stratospheric 7.9% on a year-on-year basis in February, up from 7.5% in January.

Germany’s benchmark government bond yield rose sharply and a gauge of long-term euro zone market inflation expectations rose to its highest level since late 2013.

The U.S. Treasury 10-year yield was at 1.868%.

The euro was up 0.52% to $1.0908, after falling 3% last week to its lowest level since mid-2020.

The fell 0.132%.