President Donald Trump could meet with Russian President Vladimir Putin as early as next week to discuss Ukraine peace negotiations, a White House official said on Wednesday, as markets brace for the potential implementation of sanctions targeting the global oil trade.
Diplomatic Breakthrough Following Envoy Talks
The potential face-to-face meeting would mark the first encounter between sitting U.S. and Russian presidents since former President Joe Biden met Putin in Geneva in June 2021, eight months before Russia launched its invasion of Ukraine, Reuters reported.
The announcement follows a Wednesday meeting between Putin and U.S. special envoy Steve Witkoff in Moscow, which Trump described as achieving “great progress” on Truth Social, though he stopped short of calling it a breakthrough.
White House Press Secretary Karoline Leavitt confirmed that “Russians expressed their desire to meet with President Trump, and the president is open to meeting with both President Putin and President Zelenskyy.”
According to The New York Times, Trump told European leaders during a Wednesday call that he intended to meet Putin first, followed by a trilateral meeting involving Ukrainian President Volodymyr Zelenskyy.
Friday Sanctions Deadline Creates Market Pressure
The diplomatic push comes ahead of Trump’s Friday deadline for Russia to agree to peace terms or face severe new sanctions targeting countries purchasing Russian exports.
Energy markets exhibited volatility on Wednesday, with the iShares U.S. Oil & Gas Exploration & Production ETF (NYSE:IEO) declining 1.09% to $87.47, while the United States Oil Fund (NYSE:USO) gained 1.64% to $73.79.
Trump has threatened tariffs on nations buying Russian oil, with China and India representing approximately 80% of Russia’s discounted crude exports. Treasury Secretary Scott Bessent warned Chinese officials last week that continued purchases of sanctioned Russian oil would trigger significant tariffs.
India Faces Immediate 50% Tariff Impact
Trump implemented a 25% additional tariff on Indian imports on Wednesday, doubling total duties to 50% due to New Delhi’s Russian oil purchases. India imported 2 million barrels per day of Russian crude in June, up 17.4% from May levels.
The iShares MSCI India ETF (NASDAQ:INDA) fell 0.51% following the announcement, extending weekly losses to 5%. India’s External Affairs Ministry called the decision “extremely unfortunate,” noting that U.S. imports from India totaled $91.2 billion in 2024.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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