US And Russia Begin Talks In Saudi Arabia For Ukraine Ceasefire, Black Sea Deal - iShares U.S. Energy ETF (ARCA:IYE), SPDR S&P Oil & Gas Explor & Product (ARCA:XOP)

Officials from the U.S. and Russia have commenced discussions in Saudi Arabia. The goal of these talks is to establish a comprehensive ceasefire in Ukraine and a distinct Black Sea maritime agreement.

What Happened: These talks come on the heels of U.S. negotiations with Ukraine that took place in Saudi Arabia on Sunday. The discussions are a part of U.S. President Donald Trump‘s escalated efforts to resolve the conflict that has been ongoing for three years. The U.S. delegation is spearheaded by Andrew Peek, a senior director at the White House National Security Council, and Michael Anton, a senior State Department official, reported the Reuters on Monday.

The talks primarily aim to secure a maritime ceasefire in the Black Sea to enable free shipping. Russia’s delegation features Grigory Karasin, the chair of the Foreign Affairs Committee in the upper house of parliament, and Sergei Beseda, an adviser to the Federal Security Service’s director.

Trump has expressed satisfaction with the progress of the talks and lauded Russian President Vladimir Putin‘s involvement. However, major European powers remain doubtful about Putin’s readiness to make significant concessions.

The talks also aim to discuss “the line of control” between the two countries, peacekeeping, and “confidence-building measures,” including the repatriation of Ukrainian children taken by Russia.

About Ukraine honoring the terms of the Black Sea Grain Deal, Kremlin spokesman Dmitry Peskov stated, “But if you remember the initiative in its previous form, there was quite a large part of the obligations to our country that were not fulfilled last time. Therefore, this will also be on the agenda today.”

Why It Matters: These discussions follow the Trump administration’s push for revised terms to access Ukraine’s critical resources amid peace talks. The U.S. is persuading Kyiv to agree to comprehensive terms about the ownership and control of a joint investment fund. This could potentially extend to U.S. ownership of other economic assets in Ukraine, such as nuclear power plants.

Trump announced that the U.S. is aiming to establish agreements on rare earths and minerals globally, with a special focus on Ukraine. This initiative is part of a larger strategy to secure a peace agreement with Russia.

Following the reports of the peace talks, oil prices climbed on Monday as the Brent crude futures gained 54 cents at $72.18 a barrel by 1102 GMT. IG market strategist Yeap Jun Rong told Reuters, “…the broader demand-supply outlook still remains mixed. Ukraine-Russia ceasefire talks raise the prospects of increased Russian exports on an eventual resolution, while the OPEC+ production hike as early as April points to further supply additions.”

These developments, along with U.S. sanctions on Iranian exports, make energy ETFs a key area of investor interest. iShares U.S. Energy ETF IYE climbed 0.75% over the past month, while SPDR S&P Oil & Gas Exploration & Production ETF XOP dropped 2.57% during the same period.