Oil falls after Trump declares 'energy ceasefire' between Russia and Ukraine

What happened

President Donald Trump declared an "energy ceasefire" between Russia and Ukraine. Oil prices fell following the announcement.

Ukrainian President Volodymyr Zelenskyy said in a social media post that Ukraine supports the ceasefire and that it is important for Russia to support it as well. He also said he was waiting on details from Washington.

Why it matters

Russia and Ukraine sit at the centre of global energy supply and transit, and attacks on energy infrastructure have been a recurring source of supply risk. Announcements that point to a pause in that risk tend to change how traders price the war premium in crude, which is why headlines of this kind move oil markets quickly even before terms are confirmed.

Energy prices feed into headline inflation and into the trade balances of energy importers and exporters, so shifts in crude can also reach currencies and equity indices, particularly energy and transport sectors. Gold is exposed as well, since it is often used as a hedge against geopolitical risk, and perceptions of de-escalation or renewed escalation can alter that demand. With terms still unclear, the main uncertainty is whether the declaration is matched by action on both sides.

What to watch

The articles point to the details Zelenskyy said he is awaiting from Washington, and to whether Russia states its support for the ceasefire.