Stocks Mixed As Oil Slips After Trump Declares ‘Energy Ceasefire’

Stock markets were mixed on Monday as oil prices fell after US President Donald Trump announced an “energy ceasefire” between Russia and Ukraine, offsetting the impact of a fresh wave of Houthi attacks on Saudi Arabia.

Both main crude contracts sank more than 1 percent at one point after Trump’s announcement. The move surprised Kyiv, which also said Moscow had struck several power plants in the country.

“Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine,” Trump wrote on Truth Social early on Sunday. “Both parties have agreed. Do not break it!” His post came after he called on Ukrainian President Volodymyr Zelensky to halt attacks on Russian refineries and said it was “time for Ukraine to get a new president” who would settle the war.

Zelensky appeared surprised by the announcement and said he was seeking more details, but added that “Ukraine supports the ceasefire, and it is important that Russia support it as well”. Russia has yet to confirm its agreement.

Ukraine’s allies welcomed the announcement. However, Trump had come under fire for a temporary easing of US sanctions on Russian diesel, which European leaders and Kyiv said would only embolden Russian President Vladimir Putin.

The drop in oil prices reversed an initial spike triggered by the Houthi attacks on Saudi Arabia at the weekend. At least 12 people were killed at Riyadh’s international airport on Saturday, the deadliest attack on Saudi soil in more than a decade, and another person died after a second strike on Sunday.

The attacks marked a sharp escalation in the Yemen war, in which Riyadh has long backed the internationally recognized government against the Houthis militarily. The Iran-backed group claimed several attacks over the past 24 hours and on Sunday threatened to keep targeting the kingdom’s transit hubs, calling them “a theater of operations for our forces”.

“The market is no longer paying full geopolitical premium on every headline, and that is probably the most useful signal in the morning price action,” said Stephen Innes of SPI Asset Management.

“A strike matters if it threatens real barrels, shipping lanes, refining capacity or insurance costs; otherwise, the market is getting increasingly reluctant to pay up simply because the geopolitical ticker flashes red,” he said. “The physical market remains tight enough to keep Brent above $100, but futures are refusing to treat every new escalation as the start of another straight-line inflation shock.” Asian markets started the day strongly, but the rally petered out as the session wore on.Hong Kong, Sydney, Singapore, Wellington and Manila all rose. Seoul and Taipei were dragged down by losses in chipmakers SK hynix, Samsung and TSMC, while Shanghai, Mumbai, Bangkok and Jakarta also fell. Tokyo was closed for a holiday.

US futures were sharply higher, and London, Frankfurt and Paris opened higher.

Investors are also bracing for key US inflation and retail sales data, which could play a big role in the Federal Reserve’s interest rate decision when it meets at the end of October.Earnings season also begins this week, with banking giants JPMorgan, Goldman Sachs and Bank of America due to report.