Oil prices soared near $100 per barrel, on Tuesday, after Russia's recognition of the republics of Donetsk and Lugansk in eastern Ukraine yesterday.

European stocks crept into positive territory after big losses at the start, as the Kremlin stated it remained open to all diplomatic contact over Ukraine.

"The old adage goes that the market hates uncertainty and while that has clearly been evident at times over the last couple of weeks, there's no doubt that investors continue to be tempted back in at the slightest hint of diplomacy winning the day," said market analyst Craig Erlam at Oanda trading platform.

After a three-day holiday weekend, Wall Street's three main indices opened lower, with the Dow shedding 0.6%. Earlier in the day, Asian stock markets had experienced significant losses.

Brent crude oil from the North Sea hit a seven-year high of $99.50 per barrel.

"The intensifying crisis between Russia and Ukraine has raised concerns about the supply disruptions that would ensue as sanctions look set to cripple Russia, the world's second-largest oil exporter and the world's top natural gas producer," noted Victoria Scholar, head of investment at Interactive Investor.

German Chancellor Olaf Scholz said Tuesday that he was suspending the Nord Stream 2 pipeline project with Russia in response to Moscow's recognition of Donetsk and Lugansk's independence.

The West is using Nord Stream 2 as a bid to stop Moscow from "invading" Ukraine; however, halting the project will surely affect the economy of all western parties involved.

It is noteworthy that the pipeline's construction is complete, but German regulators had not yet approved its use.

Following meetings with Scholz in Washington earlier this month, US President Joe Biden warned that if Russia invades Ukraine, he would find a way to "put a stop" to the project.

This comes as the United States, Britain, and the European Union plan to launch economic sanctions on Russia.

The recognition 

Tensions are soaring between Russia and Ukraine over the Donbass region and Moscow's latest recognition of the independence of the Lugansk People's Republic (LPR) and the Donetsk People's Republic (DPR).

Russia sees that Ukraine is violating the Minsk agreements by not holding dialogue with the leaders of the two self-proclaimed republics and launching offensives against them. Moscow had several times urged Kiev to comply with the accord it signed in 2014.

In light of the latest rounds of tensions that followed Russian President Vladimir Putin's declaration that Moscow recognized the independence of the DPR and LPR, Vladimir Putin addressed Russia in a televised speech.

The Russian leader began his speech by highlighting to Ukraine and the world that "Ukraine for Russia is not just a neighboring country, but part of its history; our comrades and relatives."

Putin reflected on the history and formation of Ukraine, recalling the times of the Soviet Union, saying, "Historically, Stalin annexed parts of Poland and Romania to Ukraine, as well as Crimea. The Ukrainian state was created by communist Russia by rejecting part of Russia's historical territories. No one asked the people anything."