Stocks rise as oil extends rally on Russia embargo talk

HONG KONG, China - Oil prices extended their rally on Tuesday on supply worries as European leaders debated banning imports from Russia, while equities advanced despite a tepid Wall Street lead and the prospect of a sharper hike in US interest rates.

Adding to the pressure, Saudi Arabia warned that Yemeni rebel attacks on its oil facilities pose a "direct threat" to global supplies, after Red Sea facilities belonging to giant Saudi Aramco were targeted. "It seems energy traders are growing more confident that supply shortages are just around the corner," warned Oanda's Edward Moya.

And Fed chair Jerome Powell on Monday indicated the bank could hike rates faster to keep a leash on inflation, less than a week after it announced what is expected to be a number of increases this year.

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