A bloodless Russian invasion of Ukrainian peninsular Crimea has prompted a spurt of risk aversion across global financial markets. But although geopolitical tensions have been described as being the highest since the 9/11 attacks, analysts told CNBC the threat of a full scale war remains limited.
Asian equity markets sold off, while safe-haven assets rallied in reaction to tensions surrounding Ukraine. Gold surged 1 percent, the Japanese yen strengthened to a near-one-month high of 101.26 per dollar and the Swiss franc touched a one-year high against the euro on Monday.
"The geopolitical uncertainty – the level of tension and the geopolitical order today – is worse than at any point we've seen since 9/11," said Ian Bremmer, president of Eurasia Group.
"Let's be very clear, it's a big hit on American credibility. It's a serious impact on major relations between the US and the Russians, and also the Europeans and the Russians. And it's something we will be dealing with for a long time as the Russians aren't going to back down," he added.
But despite the worrying levels of geopolitical tension, Bremmer told CNBC he still doubted the situation would escalate into a war.
"The Russians are vastly more interested in keeping Ukraine... [an interest stronger] than any potential…threat that could be made by the Americans or Europeans. This is a core interest for Russia... and frankly it is not for the Europeans or Americans," said Bremmer.
He also ruled out the possibility of Russia acting aggressively outside of the Ukraine.
"It's not as if Russia is going to start grabbing territory in other places, they can't. They are not influential, their economy is going to hell, there isn't the domestic support for it. But when we talk about Ukraine it's different," he said.