Since 2014, oil prices have surpassed $100 for the first time.

• The invasion of Ukraine by Russia is predicted to have significant consequences for global energy markets due to Moscow's position as the world's second-largest natural gas producer and one of the largest oil-producing nations.
• Since 2014, both Brent and U.S. oil have surpassed $100 for the first time.
• In the afternoon trading session on Wall Street, West Texas Intermediate crude futures momentarily fell into the red.

On Thursday, oil prices increased due to Russia's invasion of Ukraine, causing the international benchmark crude to surpass $100 a barrel for the first time in 2014. However, prices decreased during afternoon trading on Wall Street after President Biden stated that there are no plans to impose sanctions on Russia's energy sector.

Given Russia's position as the world's second-largest producer of natural gas and one of the largest oil-producing nations, the attack is predicted to have significant consequences for global energy markets.

Since the beginning of the year, oil prices have increased by over $20 per barrel due to the growing conflict between Russia and Ukraine. There is now concern that the imposition of international sanctions on Russia's energy sector may disrupt the supply of oil.

The price of oil rose more than 8% at one point to hit a session high of $105.79 per barrel, the highest level since August 2014. Meanwhile, the U.S. oil price climbed over 9% to trade as high as $100.54, a price last seen in July 2014.

During afternoon trading on Wall Street, both WTI and Brent crude contracts retreated. WTI settled at $92.81 per barrel, 71 cents or 0.77% higher, while Brent crude gained 2.3% to settle at $99.08 per barrel. At one point, WTI dipped into negative territory.

The price of natural gas increased by 6.5%, while spot gold, a traditional safe-haven asset, rose by 2.6%, reaching a value of $1,957.46 per troy ounce.

After recognizing the independence of two pro-Moscow separatist regions in eastern Ukraine, Russian President Vladimir Putin launched an attack on Ukraine early Thursday local time.

Kyiv, Ukraine's capital, experienced explosions, according to NBC News. The situation in Ukraine is evolving quickly, making it challenging to verify information from the country.

Dmytro Kuleba, the Ukrainian Foreign Minister, stated on Twitter on Thursday that Putin had initiated a full-scale invasion of the country, which he characterized as an act of aggression. He urged world leaders to take immediate action to stop the Russian president. Kuleba emphasized the urgency of the situation, stating, "The time to act is now."

This week, Russia faced sanctions from countries including the United States, Canada, Britain, the European Union, Australia, and Japan. These sanctions targeted banks and wealthy individuals.

It is predicted that a second round of measures will soon follow, although some analysts anticipate that Western governments will exclude energy deals from the sanctions.

Earlier this week, the International Energy Agency stated that the specific impact on world oil markets was not yet determined, but member countries were prepared to act collectively to ensure that global oil markets are adequately supplied.

Uncertainty over sanctions response

According to Tamas Varga, senior analyst at PVM Oil Associates, it is unclear what could cause the Russian president to change his stance, so the situation, equity, and oil markets will remain volatile.

Although the tension in Eastern Europe may cause oil prices to fall below $100/bbl, the retracement may be brief, and oil prices may remain high due to product scarcity in the coming months, he stated.

According to Matthew Smith, the lead oil analyst for the Americas at Kpler, there might not be an immediate interruption in supply due to Russia's attack.

The interdependence of Europe and Russia in terms of energy is significant, with each side relying on the other, according to the source. The U.S. and the West are unlikely to impose sanctions on energy flows between these two countries.

Even though everything else is escalating, the supply side is unlikely to be interrupted, he stated.

Uncertainty about sanctions from President Joe Biden's administration, in addition to tight supplies, is a concern, according to Ellen Wald, president of Transversal Consulting.

Will the U.S. impose sanctions on Russian oil or gas? This would cause significant harm to American consumers, as the U.S. does import Russian oil. Currently, there is oil being shipped to the U.S. from Russia, as reported by Wald on "Street Signs Asia."

The ongoing military operation on the ground is causing physical inability to shift oil from certain areas, particularly the Black Sea, which is now reflected in oil prices, as stated by her on Thursday.

Goldman Sachs stated in a Wednesday report that the impact of escalations in Ukraine on energy prices would be minimal.

The Wall Street bank's analysts stated that since the US is a net exporter of natural gas, any spillover effects on US gas prices from Europe's large imports of Russian gas should be minimal.

Our commodities strategists anticipate a minimal effect on oil prices, but they believe the risks are tilted upward due to the current tightness of the oil market.

- CNBC’s Pippa Stevens contributed reporting.

Ellen Wald stated that the military operation on the ground is contributing to the increase in oil prices.