Global stock markets and Wall Street futures sank Wednesday after a Federal Reserve official’s comments fueled expectations of more aggressive U.S. rate hikes and the White House announced more sanctions on Russia.

London and Frankfurt opened lower. Tokyo and Hong Kong fell, while Shanghai was little changed. Oil prices rose more than $1 per barrel.

Wall Street’s S&P 500 index tumbled 1.3% on Tuesday after Fed Governor Lael Brainard said reining in inflation that is at a four-decade high is of “paramount importance.” Brainard said the Fed is set to keep raising rates after its March hike, it’s first in four years, and might decide at its May meeting to reduce bond holdings “at a rapid pace.”

The White House said Western governments will ban new investment in Russia following evidence its soldiers deliberately killed civilians in Ukraine. The U.S. Treasury said President Vladimir Putin’s government will be blocked from paying debts with dollars from American financial institutions, potentially increasing the risk of default.