Brent crude oil futures have risen more than US$3 to US$99, (NZ$146) ,the highest since September 2014.
It comes after worries Russia's energy exports could be disrupted.
This could have a flow on effect for New Zealand, potentially seeing a rise in the price of petrol at the pump.
Stocks fell on Wall Street in afternoon trading Tuesday (Wednesday NZT) after Russia sent forces into Ukraine's eastern regions, escalating tensions.
The US, European Union and the UK responded with sanctions.
The S&P 500 was down 0.4 per cent on Wednesday morning NZT. The benchmark index was within striking distance of closing in a correction, or a drop of 10 per cent or more from its all-time high set on January 3.
Biden announces sanctions against Russian oligarchs, banks
The latest losses come as investors closely watch the crisis in Ukraine a day after Russia recognised the independence of several regions in Eastern Ukraine and decided to send in forces.
On Wednesday, President Joe Biden announced the US was ordering heavy financial sanctions against Russian banks and oligarchs, declaring that Moscow has flagrantly violated international law by invading Ukraine.
Biden also said the US was moving additional troops to the Baltic states on NATO’s eastern flank.
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