As the Russia-Ukraine crisis intensifies, oil prices rise.

• On Monday evening, Russian President Vladimir Putin ordered troops into two separatist regions of eastern Ukraine and declared the independence of Donetsk and Luhansk.
• Rising tensions have sent jitters through markets, driving oil prices higher.

Despite the escalation of the crisis between Russia and Ukraine, oil prices decreased during mid-morning trading on Wall Street.

On Monday evening, Russian President Vladimir Putin ordered troops into two separatist regions of eastern Ukraine and declared the independence of Donetsk and Luhansk.

The price of oil surged more than 3% at one point to a high of $96. The contract ended the session 1.4% higher at $92.35 per barrel. Oil traded as high as $99.50, before settling at $96.84 per barrel for a gain of 1.52%.

Markets have been affected by rising tensions, resulting in higher oil prices. On Friday, U.S. President Joe Biden announced that the U.S. believes Putin plans to attack Ukraine in the near future.

Over 150,000 Russian troops are positioned on their border with Ukraine, with an additional 7,000 troops reportedly joining last week, according to the Biden administration.

The possibility of a Russian invasion of Ukraine has raised concerns about a repeat of the Kremlin's illegal annexation and occupation of Crimea in 2014 due to heightened military tensions.

Last year, the European Union's largest supplier of natural gas and oil was Russia, and this is contributing to the rise in oil prices.

The recent increase in crude prices, which surpassed $90 per barrel, represents a 20% rise this year and an 80% surge since the start of 2021. However, this growth can also be attributed to factors such as tight supply.

If the crisis intensifies, oil prices could reach $110 per barrel, predicts Andy Lipow, president of Lipow Oil Associates.

If we cut off Russian oil supplies to Europe, which is 3 million barrels a day, oil prices could rise by $10 to $15 a barrel, bringing Brent to approximately $110 a barrel, according to a statement made on Tuesday by an expert on CNBC's "Street Signs Asia."

An invasion of Russian troops into Ukraine proper will trigger a market rally, but the market will wait to determine the source of resupply.

An agreement to revive Iran's 2015 nuclear accord is anticipated to be reached soon, increasing the likelihood of more than 1 million barrels of Iranian oil flowing back into the market daily.

According to Lipow, markets will likely turn to Saudi Arabia, United Arab Emirates, and Kuwait to utilize some of the estimated 3.5 to 4 million barrels of spare capacity daily.

According to Katrina Ell, senior APAC economist at Moody's Analytics, geopolitical tensions have contributed approximately $10 to $15 per barrel to the increase in oil prices.

If tensions continue to escalate and cause supply disruptions to Russia's oil and gas supplies, it will increase upward pressure on oil prices, negatively impacting Asia's largest economies both in production and consumption.

Ell said most of Asia’s largest economies are net oil importers.