Hong Kong: Oil prices extended their gains Thursday on growing fears of further Russia sanctions that could hit already thin supplies, while most equity markets retreated owing to surging inflation and central bank plans to sharply hike interest rates. The recent rally across equities over the past week appears to have run its course for now as investors nervously track developments in the Ukraine war, with efforts to reach a diplomatic solution crawling along. All eyes are on meetings this week of NATO, where Joe Biden and other leaders are expected to discuss further punishing Moscow for the month-long invasion, while the European Union is still debating a possible embargo on Russian oil. A warning from Russia that repairs at a terminal near a Black Sea port may take up to two months, causing a drop in exports of about one million barrels per day, added to supply worries. Both main contracts rallied more than five percent Wednesday — with Brent back above $120 — and they continued to advance in early Asian business. The surge in oil markets will further fan already elevated inflation — it is at a 40-year high in the United States and a 30-year high in Britain — putting pressure on central banks to tighten monetary policy before prices run out of control.