SYDNEY, AAP – Australia’s share market closed near its lowest levels of the day after shelling in Ukraine heightened the uncertainty of a Russian invasion.

The market closed one per cent lower on Friday and every share category was down after Russian-backed rebels and Kyiv government forces continued trading fire.

European and US leaders have threatened economic sanctions against Russia, which would have major implications for oil supply, should troops invade Ukraine.

The benchmark S&P/ASX200 index closed down 74.5 points, or 1.02 per cent, to 7221.7 points.

The ASX200 is about 400 points below its record high in August, 7632.8 points.

The All Ordinaries index closed lower by 72 points, or 0.95 per cent, to 7502.8 points.

The market was higher for the week by 0.06 per cent. This makes three consecutive weeks of gains.

The Australian dollar was buying 72.00 US cents at 1621 AEDT, higher than 71.82 US cents at Thursday’s close.