US stocks plunged sharply in trading Tuesday as investors reacted to mounting fears of escalated violence in the Russia-Ukraine war and the potential ripple effects of crippling sanctions on the global economy.

The Dow Jones Industrial Average plunged nearly 700 points in midday trading – a downturn that occurred amid reports that Russia has stepped up its attacks on portions of Ukraine with civilian populations. The latest violence included heavy bombing of Kharkiv, Ukraine’s second-biggest city, as well as a television tower in the capital city of Kyiv.

The S&P 500 – the broadest index of the US stock market, sank nearly 2% in midday trading. The tech-heavy Nasdaq index also dropped nearly 2%. The conflict has also roiled the global energy market, sending the US benchmark for oil prices above $103 per barrel — and causing higher gas prices for US motorists.