Energy Markets Volatile As Trump, Vance Clash with Zelenskyy Over Ukraine Aid

Energy markets popped Friday afternoon after a heated exchange between former President Donald Trump, Vice President JD Vance and Ukrainian President Volodymyr Zelenskyy at the White House.

The diplomatic clash, which centered on U.S. military aid to Ukraine and broader foreign policy tensions, could fuel investor concerns over geopolitical stability, sending energy-related assets higher.

What To Know: The Energy Select Sector SPDR Fund XLE, which tracks major U.S. energy companies, and the United States Oil Fund LP USO, which follows West Texas Intermediate crude oil prices, both saw volatility amid rising uncertainty in global energy markets.

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The friction between U.S. and Ukrainian leadership may signal a potential shift in American foreign policy, particularly regarding its support for Ukraine. Trump and Vance’s skepticism toward continued military aid raises concerns that a reduction in assistance could embolden Russia, potentially escalating the ongoing war.

The prospect of prolonged or intensified conflict in Eastern Europe often leads to a surge in crude prices, benefiting funds like USO. Simultaneously, rising oil prices boost the profitability of U.S. energy companies, lifting stocks within XLE.

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