"Tensions over Ukraine are driving up prices of raw materials key to the global economy, and piling pressure on governments already struggling with surging inflation," write Isis Almeida, Mark Burton and Megan Durisin at Bloomberg. "Crude oil is approaching $100 a barrel and gas in Europe surged a few days ago. Aluminum is heading toward a record high and palladium has risen this year, while wheat continues to gain", add the journalists. 

The crisis "could spawn a butterfly effect, sending commodity prices spiraling higher as supply woes multiply," analysts at Bloomberg Intelligence said in a recent report. "Sanctions could usher in shortages of food and energy, causing prices of both to soar." Russia is a major supplier of key raw materials.

GAS, FOOD AND FERTILIZER AT RISK

"One of the biggest impacts so far has been on Europe's gas markets. A major casualty could be even higher food prices. Ukraine and Russia together are heavyweights in global wheat, corn and sunflower oil trade, leaving buyers from Asia to Africa and the Middle East vulnerable to more expensive bread and meat if supplies are disrupted", writes Almeida, Burton and Durisin.

METALS CRUNCH AND OIL SPIKE

Traders are also weighing the risk of disruption to Russian exports of metals including aluminum, nickel, palladium and steel, even as analysts stress that targeting Russian producers directly with sanctions would be a major own-goal for the West. U.S. sanctions against United Co. "Any disruptions to oil flows from Russia could easily send prices rallying. JPMorgan's analysts have even tested the possibility of a spike to $150. Prices in London are approaching $100 a barrel. Additional sanctions on top of those already affecting Russia's oil industry could take oil higher much more quickly", say Almeida, Burton and Durisin.