Oil prices surged close to $100 per barrel Tuesday as major crude producer Russia prepared to send troops into two breakaway regions of Ukraine, sparking Western nations to ready economic sanctions against Moscow.
After heavy falls at the open, European stocks edged into positive territory, as the Kremlin said it remained open to all diplomatic contact over Ukraine.
Asian stock markets had earlier ended their sessions with heavy falls.
Brent North Sea crude oil reached $99.50 per barrel, the highest level in seven years.
At around 1115 GMT, it pulled back to just below $98, still a gain of around 2.5 percent compared with late Monday.
