Oil Slides on Peace Buzz—Markets Bet on Easier Sanctions and Supply Relief

 

In early Tuesday trading, oil felt the impact of international diplomacy, gently slipping as hopes mounted for potential peace talks among the U.S., Russia, and Ukraine. Brent crude fell slightly to about $66.53 per barrel, while U.S. WTI crude softly eased to around $63.36, with futures turning down modestly on anticipation of smoother supply dynamics.

This cooling move came after a high-profile White House meeting between President Trump, Ukrainian President Zelenskiy, and European leaders. Trump confirmed discussions with Putin to arrange a three-way summit, sparking speculation over relaxed sanctions. Analysts suggest that if pressure eases on buyers of Russian oil, prices could fall gradually toward $58 a barrel heading into late 2025 and early 2026.

Yet, the path forward remains narrow. While diplomacy hints at thawing, missteps or lopsided concessions could quickly jolt markets again. Ukraine’s Zelenskiy called the talks “very good” and suggested U.S. security assurances were on the table—stoking optimism—but questions linger over the final shape of any peace mechanics.

In short, oil markets are treading carefully—pricing in hope over continued conflict, but still hedging for the unexpected. All eyes are now on whether diplomacy can hold long enough to pave the way for sustained energy stability.