Oil Prices Fall as Stocks Rise After Trump Announces "Energy Ceasefire”

Oil prices fell more than 1 percent earlier in the week as global stock markets advanced after US President Donald Trump announced an “energy ceasefire” between Russia and Ukraine.

Oil prices retreat after President Donald Trump announces an energy ceasefire between Russia and Ukraine, despite uncertainty over whether the agreement has taken effect.

The announcement, however, was met with uncertainty in Kyiv, where officials said Russian attacks on energy infrastructure continued.

“Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine,” Trump wrote on Truth Social on Sunday, adding that both parties had agreed to the arrangement.

Ukrainian President Volodymyr Zelenskyy said he was seeking further details.

He welcomed the prospect of a ceasefire but stressed that Russia must also comply. Russia had not confirmed its agreement at the time of the report.

Trump's announcement followed his calls for Ukraine to stop attacking Russian refineries.

He also questioned Zelenskyy's leadership, saying Ukraine needed a new president who could settle the war. The declaration came amid criticism of Trump's decision to temporarily ease certain US sanctions on Russian diesel.

Ukrainian and European officials warned that easing restrictions could benefit Russian President Vladimir Putin.

The decline in oil prices reversed an earlier increase triggered by Houthi attacks on Saudi Arabia over the weekend.

Reports said at least a dozen people were killed in an attack at Riyadh's international airport on Saturday, with another fatality reported after a second strike on Sunday.

The attacks marked a further escalation in the Yemen conflict, where the Houthis have threatened additional strikes on Saudi transport hubs.

The ceasefire announcement helped support financial markets, but uncertainty over the conflict and the security of energy infrastructure continued to cloud the outlook for oil supplies.