After world powers imposed less harsh sanctions on Moscow, oil prices went up Wednesday and stock prices went up as investors tracked developments in the Russia-Ukraine crisis.
However, trading floors remain on edge as Russian President Vladimir Putin ordered his forces into Ukraine to secure the self-declared Donetsk and Lugansk rebel republics, with Western leaders warning that a war could break out soon.
Since the move this week, global markets have been in turmoil, with oil soaring to the $100 mark not seen since 2014 and other commodities hitting multi-year highs.
Wall Street, which was closed for a holiday Monday, was down in early trade but saw a bounce after US President Joe Biden unveiled a series of sanctions against Russia.
The measures included moves against two Russian banks, cutting the country off from Western financing, targeting Moscow's sovereign debt, and penalising oligarchs and their families who are part of Putin's inner circle.
Following a series of announcements in Europe, Germany halted the certification of the lucrative Nord Stream 2 gas pipeline from Russia, while Britain targeted five banks and three billionaires.
Canada, Japan and Australia have followed up with their own punishments.
The sanctions were not as bad as feared - crucially not aiming at Russia's crude exports - providing some much needed breathing room for investors and halting the surge in oil prices that has seen both main contracts pile on more than 20 percent so far this year.
The price of Brent touched $99.50 on Tuesday, and the WTI was slightly lower in Asia.
Biden said that the moves were only a first tranche in response to Putin's carving out a large chunk of Ukraine and that more penalties could be imposed if he does not change course.
Vivek Dhar, head of Commonwealth Bank of Australia, said there was still a chance that oil prices could surge above $100 a barrel if the situation escalates.
Oil markets are particularly vulnerable at the moment, given that global oil stockpiles are at seven-year lows and that OPEC spare capacity is being questioned due to disappointing OPEC supply growth. Bangkok and Manila fell. The US Federal Reserve is trying to rein in 40 year-high inflation as investors prepare for a series of interest rate hikes by the US Federal Reserve.
The March hike is baked in, but forecasts for more increases this year are being affected by events in Europe as officials try to assess the impact on the economy.
Steven Wieting, of Citigroup Private Bank, said that how the Federal Reserve wants to handle that issue is the issue that feeds through to the US markets and the broader world.
OANDA's Jeffrey Halley added: Markets will likely bubble along sideways until Mr Putin's next move.
I have no doubt that Russia Ukraine has the potential to cause a stagflationary shock to the rest of the world if oil prices go above $130.00 a barrel.
That would leave many central banks having to do. Just as inflationary pressures increased sharply, monetary normalisation stopped. West Texas Intermediate: DOWN 0.3 percent at $91.67 per barrel.
Brent crude for the North Sea was down 0.2 percent at $96.66 per barrel.
Euro dollar is DOWN at $1.1326 from $1.1330 late Tuesday.
Euro pound was DOWN at 83.30 pence from 83.35 pence.
New York- Dow was DOWN 1.4 percent at 33,596.