Oil prices pare gains after Russia-Ukraine ceasefire announcement
Updated
Updated · MarketWatch · May 8
Oil prices pare gains after Russia-Ukraine ceasefire announcement
8 articles · Updated · MarketWatch · May 8
Trump said the three-day truce starts on 9 May and includes a swap of 1,000 prisoners from each side, agreed by Vladimir Putin and Volodymyr Zelensky.
US crude was up 0.4% at about $95 a barrel after earlier rising as much as 1.4% before Trump's Truth Social post on Friday afternoon.
Trump said the ceasefire would suspend all kinetic activity and voiced hope it could mark the beginning of the end of the long-running war.
Can a temporary ceasefire halt a war now dominated by Ukraine's advanced long-range drones and missiles?
With Russia suffering record losses, is this truce a genuine step toward peace or a trap to reset the war?
Ceasefire Collapse and 40% Russian Oil Export Disruption Drive May 2026 Global Market Volatility
Overview
In early May 2026, Ukraine's unilateral ceasefire was swiftly violated by Russia, which launched numerous attacks including missile strikes killing civilians, leading Ukraine to reject Russia's own ceasefire proposal. Meanwhile, Ukraine intensified drone strikes that crippled about 40% of Russia's oil export capacity, causing Russia's oil production to fall to levels unseen since 2009. Despite high global oil prices boosting Russia's nominal revenues, massive subsidies to repair damaged infrastructure limited net gains. Concurrently, U.S.-Iran tensions caused sharp oil price swings, while U.S. focus on the Middle East diverted resources from Ukraine, worsening its air defense shortages. These overlapping conflicts fueled global economic instability and prolonged the war's deadlock.