Oil falls on Ukraine-Russia energy ceasefire

Brent crude down 1.5% to $103 Saudi Arabia’s airports attacked US response to Iran conditions ‘insufficient’ Oil prices fell in early trading on Monday after US President Donald Trump said Russia and Ukraine would immediately halt attacks on each other’s energy facilities. Prices declined despite a widening Middle East conflict, as Yemen’s Houthi militia attacked Saudi Arabia’s civilian airports on Saturday and Sunday. Saudi Arabia’s stock exchange fell on Sunday following the weekend attacks, which led to fatalities and flight cancellations. Trump said in a social media post on Sunday that Ukraine and Russia had agreed to an “energy ceasefire” with immediate effect. “There is an energy ceasefire in the war between Russia and Ukraine. Both parties have agreed. Do not break it!” he said. Brent crude futures fell 1.56 percent to $103.1 a barrel by 03:00 GMT, while US West Texas Intermediate crude stood at $90.17 a barrel, down 1.84 percent. Ukrainian President Volodymyr Zelenskyy said on social media that it was important for Trump’s statement to become reality. “Ukraine wants peace. The question is whether Russia does. We are awaiting clear details of the dialogue between America and Russia – and we expect [Russian President] Putin to follow through on what President Trump said.” Russia has not commented officially. On Friday, Trump said Russia would release almost 1.8 million tonnes of diesel to US and global markets, starting with an immediate supply of 300,000 tonnes. Further reading: Houthi attacks threaten Saudi Arabia’s investor confidence Fragile peace pact drove brief spike in Gulf fuel exports to US Gulf suppliers urged to halt Hormuz crossings Sunday’s attack on Riyadh airport led to one more death after Saudi Arabia’s General Authority of Civil Aviation (Gaca) confirmed that Saturday’s attack had killed 12 people and injured 309. King Fahd International Airport in Dammam was targeted on Sunday evening, according to the Gaca. The civil aviation authority said damage assessments and safety inspections of airport facilities were underway in coordination with other authorities. Major general Turki Al-Malki of the Coalition to Support Legitimacy in Yemen confirmed the destruction of a Houthi missile targeting Khamis Mushait on Monday morning, the state-run Saudi Press Agency reported. Houthi spokesperson Yahya Saree reiterated the group’s warning on social media for global airlines to stop flying to Saudi Arabia after the group carried out four strikes against the kingdom using ballistic missiles, cruise missiles and drones. Trump said he is considering joining Saudi Arabia in its retaliation against the Houthis. “We may. We’re going to look at it. We just found out about the recent attack. So, we’ll make a decision. We move very quickly,” he told reporters in Washington. Meanwhile, the United Kingdom Maritime Trade Operations Centre (UKMTO) reported a new attack on a tanker near Oman on Sunday following four other attacks on vessels in the Strait of Hormuz over the weekend. In the latest reported incident, an uncrewed aerial vehicle struck a tanker near Sohar anchorage, Oman, while it was transiting the strait, the UKMTO said. In Iran, major general Mohsen Rezaei, secretary of the Supreme National Security Council, said on Sunday that the US response to Iran’s seven conditions was “insufficient”, the state-run IRNA reported. “We announced seven conditions to the Americans: if you do not implement these conditions, neither will the Strait of Hormuz [be] open to you, nor will there be any negotiations,” he said. Saudi Arabia’s benchmark index fell 1 percent on Sunday following the airport attacks, weighed down by blue chips such as Saudi National Bank and Saudi Aramco . Qatar’s stock index shed 1.5 percent, while Oman’s closed 0.3 percent higher.