Oil prices pulled back on Monday after Trump indicated that Ukraine and Russia had agreed to halt attacks on each other's energy infrastructure — a development linked to a parallel US fuel-supply deal with Moscow that market participants read as a possible signal of greater availability of Russian crude.
Oil markets are keeping a close watch on the threat of renewed strikes against Saudi Arabia and potential interference with tanker traffic through the Strait of Hormuz, with both scenarios carrying the prospect of fresh disruptions to global supply.
Trading data at 0154 GMT placed Brent crude futures at USD 103.18 a barrel, a drop of USD 1.54 — equivalent to 1.47 per cent — while West Texas Intermediate held at USD 90.31, having shed the same dollar amount, representing a 1.68 per cent retreat, according to broadcast reports.
A Friday statement attributed to Trump pointed to plans for redirecting upwards of 300,000 metric tons of diesel — roughly 2.25 million barrels — into both domestic supply channels and export markets, a development that pushed ICE gasoil futures down by about 3 per cent to USD 1,436 per barrel, according to the report.
On Sunday, Trump declared that an "energy ceasefire" between Russia and Ukraine would take hold immediately, the announcement coming a day after he had directed pointed remarks toward Zelensky over Ukrainian strikes on Russian oil refineries. An accord was reached between the two sides. In a Truth Social post, Trump closed with the phrase "Thank you for your attention to this matter."
In a phone call with Trump, Canadian Prime Minister Mark Carney voiced backing for the energy truce between Ukraine and Russia. Carney echoed Zelensky's position by urging Russia to honour the truce terms, and stressed that halting strikes on energy infrastructure and civilian populations without delay was a matter of necessity, according to a broadcast news outlet. A separate statement, also cited in the report, indicated that Canada would keep expanding oil and diesel shipments to the United States, with volumes already exceeding one million barrels of diesel daily.
Under such a pact, both nations commit to leaving the other's power and fuel networks untouched by military action. A halt in hostilities has not resolved the deeper dispute at the heart of the confrontation.
No public statement from Moscow followed the ceasefire announcement, which arrived after Trump had pressed Ukraine over several days to halt attacks on Russian oil refineries. According to a broadcast news outlet, Trump attributes the uptick in diesel costs to those strikes, pointing to the financial pressure this places on voters ahead of the party's performance in next month's US midterm elections.
In separate moves, Trump told Zelensky that Ukrainian attacks on Russian oil infrastructure should end, while also urging the Ukrainian people to hold a new election to decide their leadership. Trump's position held that chances for a negotiated end to the conflict with Moscow had been left on the table by Zelensky.
An energy ceasefire in Ukraine was declared by Trump around mid-September, though no confirmation of any such arrangement came from either party involved, according to a broadcast news outlet.
According to one person briefed on the matter, Washington put forward the prospect of suspending both intelligence-sharing arrangements and arms procurement routed through the Prioritised Ukraine Requirements List (PURL) as part of pressure on Kyiv to stop targeting energy infrastructure inside Russia. Advisories attributed to the US had been picked up and circulated by a broadcast outlet before this account. According to that individual, Zelensky had been holding talks with European leaders aimed at easing tensions with Trump.
No reply from the White House had arrived by the time of publication. Conversations with NATO Secretary General Mark Rutte, Canadian Prime Minister Mark Carney, and Finnish President Alexander Stubb all touched on Trump's ceasefire announcement, Zelensky indicated.
