Global markets have been battered by the warnings of war, and they rose on Tuesday after Putin said he’d give diplomacy another chance.

Russia is a major exporter of oil and other commodities, and Biden warned that an invasion could lead to higher energy prices. The fear of war has already driven average U.S. gasoline prices close to $4 per gallon for the first time in nearly 14 years, Axios’ Nathan Bomey writes.

Russia is also Europe’s primary source of natural gas, and countries like Germany fear a spike in already high prices in the event of war, possibly as retaliation for western sanctions.

The U.S. and its allies have promised “unprecedented” sanctions if Putin does invade. Those could restrict access to key technologies and make Russia even more economically reliant on China.