Both Russian and Turkish stock markets fell following the news that Turkey shot down a Russian warplane early Tuesday near the Syrian border after it violated Turkish airspace.

The Borsa Istanbul (BIST) 100 Index slumped 4.4 percent, the most in five months, and decreased from near 79928 point level down to 76242 points.

Meanwhile, Russian Micex index fell 3.1 percent to end at 1,810.05, its biggest decline in eight months.

The Turkish lira weakened 0.9 percent against the U.S. dollar at 5:40 p.m. in Istanbul.

The bond market also declined while credit risk increased.

On the other hand, U.S. crude prices closed higher on Tuesday, rising more than 2.5 percent, after a rally in U.S. gasoline stopped crude futures testing low $40 levels.

The Su-24 jet was warned 10 times after violating Turkish airspace and was then downed in line with Turkey's military rules, Turkey's Presidency confirmed.

Prime Minister Ahmet Davutoğlu had said last month that the nation's military rules of engagement would apply to any plane that enters its airspace without permission and Russia should 'act carefully'.