Oil Prices Crash As US-Russia Push Ukraine War Truce, Nasdaq 100 Nears Record

U.S. and Russian negotiators are racing to finalize a potential agreement that would freeze the war in Ukraine and lock in Moscow's control over key territories, setting the stage for a possible Trump-Putin summit as early as next week.

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The move is creating ripple effects across markets with oil prices dropping, gold trimming earlier gains and stocks rising to near record highs.

Ukraine Ceasefire Talks Gain Momentum

According to Bloomberg, citing sources familiar with the matter, the proposal would involve Ukraine ceding the entire eastern Donbas region and Crimea to Russia.

In exchange, Moscow would halt its offensive in the Kherson and Zaporizhzhia regions along current battle lines.

The plan would essentially formalize the territorial changes Russia has sought since its full-scale invasion of Ukraine began in February 2022.

Putin's demands still include Kyiv abandoning its bid for NATO membership and accepting the loss of four occupied Ukrainian regions.

This sets up a difficult choice for Ukrainian President Volodymyr Zelenskiy, who faces constitutional constraints on ceding territory and strong opposition to legitimizing Russian annexations.

So far, Trump hasn't imposed direct sanctions on Moscow but has sought to pressure Russia indirectly.

This week, he doubled tariffs on Indian imports to 50% over New Delhi's purchases of Russian oil, sparking diplomatic tensions with one of Washington's key partners in Asia.

Trump has also threatened broader tariffs on countries still buying Russian crude if Putin does not agree to a ceasefire by Friday.

Market Reactions

West Texas Intermediate crude plunged sharply below $64 a barrel, hitting a 2-month low. Gold also fell from $3,400 to $3,385 an ounce as investors rotated out of safe havens.

U.S. equities rallied, with the Nasdaq 100 – as tracked by the Invesco QQQ Trust QQQ – rising 0.7% to 23,560, inching closer to record highs.

The S&P 500 climbed 0.7% to 6,381, the Dow Jones gained 0.5% to 44,193, and the Russell 2000 added 0.4% to 2,223.60.

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