Commodities were also somewhat subdued; Spot Gold (XAU/USD) and Spot Silver (XAG/USD) were muted, while WTI Oil (West Texas Intermediate) rallied 0.5%.
White House Meeting
All eyes were on the meeting between Ukrainian President Volodymyr Zelenskiy, US President Donald Trump, and Ukraine’s European allies at the White House. Trump outlined plans for a bilateral meeting between Zelenskiy and Russian President Vladimir Putin, which will be followed by a trilateral meeting involving the two leaders and Trump.
Amidst all the niceties and suits, Trump committed to US involvement in providing security guarantees for Ukraine as part of any peace agreement, but noted that a formal ceasefire would not be necessary to negotiate a peace deal. Trump said that ceasefires might be counterproductive, as they allow for rebuilding military capabilities rather than pursuing a genuine resolution. These talks serve as a potential shift in diplomatic strategy, emphasising immediate negotiation over traditional cease-and-desist approaches to conflict resolution.
Although Russia is not the world’s largest Oil producer – it is the third-largest – a peace deal would likely bring some Oil market stability. Conversely, expanded sanctions on Russian Oil buyers in the event of Russia and Ukraine failing to secure a deal could create market volatility and potentially drive prices higher due to supply disruptions and reduced buying options.
