(Reuters) – European stock futures plunged 4% on Thursday as investors dumped riskier assets after Russia attacked Ukraine, raising fears that a war in Europe will fuel higher inflation and derail economic growth.

Futures tracking Europe’s top 50 firms plummeted 4.1% by 0630 GMT. Among regional markets, German DAX futures dropped 4.4% and UK’s FTSE futures fell 2.4%.

Russian forces fired missiles at several cities in Ukraine and landed troops on its south coast on Thursday, officials and media said, after President Vladimir Putin authorised what he called a special military operation.

The United States and its allies will impose “severe sanctions” on Russia, U.S. President Joe Biden said.

Oil prices surged about 5%, pushing Brent crude past $100 a barrel for the first time since 2014, adding to inflation worries. [O/R]

Futures tracking New York’s S&P 500 fell 2.1% and Nasdaq 100 futures dropped 2.6%.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, February 22, 2022.