Trump Declares Russia-Ukraine Energy Ceasefire but Russia Strikes Ukrainian Power Plants Hours Later

President Donald Trump announced Sunday that Russia and Ukraine had agreed to an immediate "energy ceasefire," ordering both sides to halt attacks on each other's energy infrastructure. The declaration, posted on Truth Social, came one day after Trump announced a separate deal for Russia to supply 500,000 metric tons of diesel fuel to the United States and global markets, the first such arrangement since 2022. Treasury Secretary Scott Bessent said the administration had existing legal authority to implement the diesel deal and called it good for the American people.

The announcement immediately unraveled on multiple fronts. Ukrainian President Volodymyr Zelenskyy told Axios the ceasefire "was news for me," saying Kyiv had not been informed in advance and learned of it through social media. Senior Ukrainian officials said they wondered "if Putin knows it." Russia's Duma energy committee also said it knew nothing of any energy truce, with its first deputy chairman suggesting Trump was engaging in a verbal intervention to suppress oil prices. Within hours, Russia struck Kharkiv's main heat-and-power facility, CHP-5, and hit a power plant in Kyiv, knocking out 200 megawatts and disrupting water supplies. Zelenskyy confirmed the Kharkiv strike and said Russia had carried out more than 200 attacks on Ukrainian energy infrastructure in the prior week alone, killing more than 150 and injuring over 700.

Zelenskyy nonetheless said Ukraine would accept the ceasefire if Russia complied, and Canadian Prime Minister Mark Carney said he had spoken with both Trump and Zelenskyy and called the truce a potential significant de-escalation. The European Commission backed Zelenskyy's call for a ceasefire while also announcing increased EU funding for drones and missiles for Ukraine's defense. The Financial Times reported the US was threatening to block weapons and intelligence sharing with Ukraine if Kyiv continued striking Russian refineries, and was lobbying EU capitals to press Kyiv to halt those attacks. Six senators, in a bipartisan group, called on Trump to immediately reverse the Russian diesel deal, arguing it would finance Putin's war machine and potentially violate US law.

Trump sharpened his public confrontation with Zelenskyy, saying "I think it's time for Ukraine to get a new president" and blaming Zelenskyy for high diesel prices in the United States. Zelenskyy responded that leadership was "up to our people" and offered to hold Ukrainian elections if Putin agreed to a 60-day full ceasefire on the frontline. Trump separately said he ruled out a US strike on Iran before the November 3 midterm elections but warned Iran could "do a little bit extra" before then.

Oil markets reacted to the ceasefire announcement with a sharp pullback. Brent crude fell roughly 1.3-2% to around $104 a barrel, though it remained above $100, and WTI fell near $90. Jim Cramer said he expected crude to hold near $100 while the war continued. Marko Kolanovic called the energy ceasefire a "con," while Fundstrat's Tom Lee saw potential inflation relief. Wheat fell for a fourth session on hopes the ceasefire could ease Black Sea disruptions. Equity futures in the US and Europe edged higher, and Indian shares were expected to open higher on reduced sanctions risk. Gold edged up to around $4,207 an ounce as traders balanced ceasefire hopes against escalating Middle East tensions.

Separately, Houthi forces carried out a sustained campaign of strikes on Saudi Arabia over the weekend. A missile attack on King Khalid International Airport in Riyadh on Saturday killed at least 12 people and wounded 309, including citizens of the United States, Saudi Arabia, Egypt, Jordan, Syria, Bangladesh, Palestine and Sudan, making it the deadliest strike on Saudi Arabia since the Yemen war began 11 years ago. A second strike hit Terminal 4 the following day, igniting a fire, and the Houthis also claimed attacks on King Fahd International Airport in Dammam and two Aramco facilities in eastern Saudi Arabia. The US warned American airlines of Saudi airspace risks. Trump said he was considering US participation in Saudi military operations against the Houthis. Canada, Turkey, Pakistan, Egypt and China all condemned the airport attacks.

North Korea fired multiple ballistic missiles toward the East Sea from the Pyongyang area on Monday, with South Korea's military saying the missiles traveled more than 900 kilometers. Seoul convened an emergency National Security Council meeting and demanded an immediate halt, calling the launches a severe breach of UN Security Council resolutions. South Korea's military assessed the launches were intended to demonstrate missile capabilities following Seoul's own recent hypersonic missile test.