Markets now await his meeting with Ukraine and European leaders for clarity on the U.S. peace push. (Image Credits: Bloomberg)
Oil prices edged lower in early Asian trading on Monday, after the United States refrained from imposing additional restrictions on Russia’s energy exports, despite a high-stakes meeting between Presidents Donald Trump and Vladimir Putin in Alaska last week.
Brent crude futures fell by 32 cents, or 0.49%, to $65.53 a barrel at 2213 GMT, while U.S. West Texas Intermediate (WTI) dipped 23 cents to $62.57 a barrel. The market reacted to signals that Washington will not immediately push forward with new measures to curtail Moscow’s oil sales, a move that traders had been closely watching.
The development followed Friday’s meeting between Trump and Putin, where both leaders appeared to converge on pursuing a peace deal in Ukraine rather than pressing for a ceasefire first. Trump is scheduled to meet Ukrainian President Volodymyr Zelenskiy and top European leaders on Monday in a bid to fast-track negotiations to end Europe’s deadliest war in eight decades.
Also Read: Mike Pence Urges Trump to Hit Putin with ‘Hammer’ Amid Ukraine Peace Talks
Analysts noted that the U.S. had been weighing secondary tariffs on importers of Russian oil, but Trump has signaled a pause on further escalation — particularly regarding China.
“The status quo remains largely intact for now,” said Helima Croft, an analyst at RBC Capital. “Moscow is unlikely to walk back its territorial demands, while Ukraine and some European leaders will balk at a land-for-peace deal.”
The hesitation to tighten sanctions has left energy traders bracing for continued volatility, with prices swinging on geopolitical developments as much as supply-demand fundamentals. Investors are expected to keep a close watch on Trump’s upcoming discussions with European allies for clearer signals on Washington’s strategy.
