Amid escalating tensions between Russia and Ukraine, oil prices rise.

Amid escalating tensions between Ukraine and Russia, oil prices surged in afternoon trading on Friday.

Despite speculation to the contrary, Jake Sullivan, the U.S. National Security Advisor, stated at a White House briefing that there were signs of Russian escalation at the Ukraine border with only 2 hours left to the trading day, and it was possible that an invasion could occur during the Olympics.

According to Sullivan, there are indications of Russian escalation, such as the deployment of new troops at the Ukrainian border. As previously stated, we are currently in a situation where an invasion could occur at any moment.

According to Sullivan, the U.S. is uncertain if Russian President Putin has made a final decision to invade Ukraine, but "it may well happen soon." This comment caused stocks to come off their lows and oil and bond prices to retreat from their highs of the trading session, slightly countering an earlier report that had sent markets reeling.

The U.S. and U.K. have urged citizens to leave Ukraine.

Boris Johnson, the Prime Minister, was concerned about the safety of Europe in the present climate.

The spokesperson stated that Russian President Vladimir Putin "recognized the potential consequences of his actions, including severe penalties that would harm Russia's economy, and understood the need for Allies to maintain support for NATO's eastern borders."

On Monday, the price of West Texas Intermediate, the U.S. oil benchmark, increased by more than 5% to reach $94.66 per barrel, its highest level since September 30, 2014. Despite this, the contract slightly eased into the close, ending the day with a 3.58% increase at $93.10 per barrel.

After reaching a high of $95 per barrel, the price of oil settled at $94.44, an increase of 3.3%.

Rebecca Babin of CIBC Private Wealth stated that the market has been concerned about the outcome for several weeks, but most believed it would not occur or would happen after the Olympics. The key factor for crude will be the type of sanctions the US and allies impose if Russia invades.

The ultimate impact on crude supply will be determined by the sharp move higher, which is based on speculation and speaks to the tightness of the oil market's fundamentals. The growing demand, coupled with low inventory and constrained new supply, is stoking fears in the market.

Earlier in the session, oil prices had already risen by more than 2% after the release of the International Energy Agency's latest oil report.

This year, global demand is predicted to reach a record high of 100.6 million barrels per day, thanks to the easing of covid restrictions.

John Kilduff of Again Capital stated that everyone's worst fears may be coming true, and the outcome is uncertain. The energy supply is at stake.

- CNBC’s Kevin Breuninger contributed reporting.