Europe's main stock markets plunged more than three percent in midday deals after Asian indices closed sharply lower.

The euro sank close to a two-year low under $1.10 on Friday as the Ukraine conflict clouds the eurozone's economic recovery from the coronavirus pandemic.

The European single currency slid in late morning deals to $1.0974, the lowest level since May 2020, as the greenback benefited also from its status as a haven investment.

"Investors have been rattled by the turn of the fighting in Ukraine, after a nuclear plant was attacked which has heightened worries about the potential escalation of the crisis," noted Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

Oil prices climbed once more on fears of supply disruptions to Russian crude but were far off heights of almost $120 per barrel reached Thursday.

Hopes for an Iran nuclear deal that would allow Tehran to restart crude exports to the world market capped crude's gains, analysts said.

Ukraine's President Volodymyr Zelensky has meanwhile demanded still tougher sanctions against his Moscow foes after Russian forces attacked and seized the Zaporizhzhia nuclear power plant, but Kyiv said no radiation leak was detected.

Western countries have hit Russia's economy hard including by closing airspace, freezing assets and excluding seven banks from the SWIFT interbank messaging network.

The impact already impeding Moscow's ability to shore up the beleaguered ruble and purchase imports.

Russia's invasion of its neighbour Ukraine has sent global stock markets slumping over the week, during which time commodities including wheat, metals and particularly oil have soared.

That has fuelled concerns that the global economic recovery from Covid-19 will be derailed, especially with surging prices adding to worries about decades-high inflation.

To combat rocketing costs, Federal Reserve boss Jerome Powell this week said he intends to raise US interest rates this month, though he tempered expectations of a half-point rise.

"The economic clinch point of this war is commodity prices," said City Index analyst Fiona Cincotta.

"Higher energy prices, slowing growth, and surging inflation are not a good outlook."

- Key figures around 1130 GMT -

London - FTSE 100: DOWN 3.1 percent at 7,018.73 points

Frankfurt - DAX: DOWN 3.2 percent at 13,267.46

Paris - CAC 40: DOWN 3.1 percent at 6,178.15

EURO STOXX 50: DOWN 3.2 percent at 3,621.74

Tokyo - Nikkei 225: DOWN 2.2 percent at 25,985.47 (close)

Hong Kong - Hang Seng Index: DOWN 2.5 percent at 21,905.29 (close)

Shanghai - Composite: DOWN 1.0 percent at 3,447.65 (close)

New York - Dow: DOWN 0.3 percent at 33,794.66 (close)

Euro/dollar: DOWN at $1.0981 from $1.1069 late Thursday

Pound/dollar: DOWN at $1.3292 from $1.3350

Euro/pound: DOWN at 82.61 pence from 82.89 pence

Dollar/yen: DOWN at 115.36 yen from 115.45 yen

Brent North Sea crude: UP 2.0 percent at $112.65 per barrel

West Texas Intermediate: UP 2.2 percent at $110.05 per barrel

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HARGREAVES LANSDOWN