Crude prices fell on Friday on demand concerns linked to rising interest rates and a stronger dollar, although losses were limited by Russia’s mobilization campaign and the apparent impasse in talks over a nuclear deal with Iran.

At 1100 GMT, Brent crude futures were down $2.91, or 3.21%, at $87.56 a barrel, with the U.S. West Texas Intermediate (WTI) futures down $2.94, or 3.46%, at $80, 61.

World stocks hit their lowest level in two years, while the dollar index hit its highest level in two decades, weighing on oil prices.

“Concerns of a recession, further rate hikes, and subsequent dollar strength are beating geopolitical tensions,” said Tamas Varga, an analyst at PVM Oil Associates.

“Oil gains will be limited as long as the dollar is strong, although a referendum to be held in eastern Ukraine could further increase tensions between Russia and the West, especially if Ukraine’s allies provide additional assistance for Ukraine to regain the region,” it added.

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Russia launched a referendum on Friday to annex four Ukrainian-occupied territories, something it called an illegal joke kyiv that it said included threats against residents if they didn’t vote.

After the US Federal Reserve raised interest rates by 75 basis points on Wednesday, central banks around the world followed suit with their own hikes, increasing the risk of an economic slowdown.

On the oil supply side, efforts to revive the 2015 Iran nuclear deal have stalled as Tehran insists on closing the UN nuclear watchdog investigation, a senior US State Department official said, dampening expectations of a revival in its crude exports.