Global stock markets mostly rose early Monday as oil prices declined following US President Donald Trump’s announcement of an energy ceasefire between Russia and Ukraine, easing concerns over potential disruptions to global energy supplies. The decline in crude prices offset the impact of fresh Houthi attacks on Saudi Arabia over the weekend.
Both major crude oil benchmarks fell more than 1% after Trump announced the agreement on Sunday through a post on Truth Social. However, the announcement surprised Kyiv, which reported that Russian forces had struck multiple power plants across Ukraine.
“Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine,” Trump said, adding that both parties had agreed to the arrangement.
Ukrainian President Volodymyr Zelensky expressed surprise and said Kyiv was seeking further details. He added that Ukraine supported the ceasefire and expected Russia to honour the agreement. The announcement followed Trump’s appeal to Zelensky to stop attacks on Russian oil refineries, alongside his criticism of the Ukrainian president’s leadership.
Although Ukraine’s allies welcomed the announcement, Trump faced criticism after temporarily easing US sanctions on Russian diesel. European leaders and Kyiv argued that the move could strengthen Russian President Vladimir Putin’s position.
Meanwhile, Houthi attacks on Saudi Arabia had initially pushed oil prices higher. At least 12 people were reported killed in an attack at Riyadh’s international airport on Saturday, followed by another fatality in a subsequent strike on Sunday. The attacks marked a significant escalation in the Yemen conflict.
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The Iran-backed Houthi group claimed responsibility for several attacks within 24 hours and threatened further strikes against Saudi Arabia’s transportation infrastructure.
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Stephen Innes of SPI Asset Management said markets were becoming less responsive to geopolitical headlines unless they threatened actual energy supplies, shipping routes, refining capacity or insurance costs.
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Despite Monday’s decline, the physical oil market remained tight enough to keep Brent crude above $100 per barrel. However, futures markets appeared less inclined to interpret every geopolitical escalation as the start of another inflationary surge, offering some relief to investors concerned about energy costs and global economic growth.