Trump: Ukraine and Russia have agreed not to hit energy targets

Crude oil prices declined following statements from President Donald Trump indicating that Ukraine and Russia have agreed to refrain from targeting each other's energy infrastructure. In a public message, Trump stated that Ukraine consented to avoid strikes on Russian energy installations, with Russia agreeing to a reciprocal arrangement. Trump also contended that the recent surge in global diesel prices has been predominantly driven by the conflict between Russia and Ukraine rather than escalating tensions with Iran. The announcement provided immediate downward pressure on oil benchmarks, as traders factored in a reduced risk premium regarding potential disruptions to Russian refined fuel and crude export infrastructure. While the White House has focused its messaging on the Russia-Ukraine dynamic as the primary catalyst for elevated fuel prices, analysts observe that broader energy market pressures also stem from refinery constraints in the Middle East due to disruptions in the Strait of Hormuz. The reported mutual agreement not to hit energy targets could help stabilize diesel supply flows if maintained.