Russia Didn’t Hit Any Ukrainian Energy Targets on Tuesday. Oil Prices Retreated.

Oil prices fell on Tuesday as Russia didn't strike any energy targets in Ukraine after President Donald Trump declared an energy ceasefire between the countries on Sunday.

Brent crude, the international benchmark, dropped 0.88% and clocked in at $105.71 per barrel at 9:59 a.m. ET, while West Texas Intermediate, the U.S. benchmark, edged down 0.33% and stood at $93.43 per barrel at the same time.

Russia's defense ministry did not mention targeting any Ukrainian energy infrastructure in its summary of strikes, even if a Kremlin spokesman declined to say a ceasefire was reached.

Kyiv did accuse Moscow of breaking the ceasefire on Monday. "There were ​Russian violations of the energy ceasefire announced by President Trump," Ukrainian President Volodymyr Zelenskyy said in the context of a conference in Poland of which he took part through video. Kyiv accused Moscow of striking a thermal power plant in the city of Kharkiv.

"This energy ceasefire, it can work, and it can become a major step toward ending the war if the Americans truly step in now and make sure Russians respect it," he added.

Trump declared the ceasefire in a social media post on Sunday, saying both parties had agreed to it and urging them not to break it. The Kremlin has not confirmed the deal, saying that contacts were still ongoing.

The announcement came just two days after Trump announced that he and Putin had agreed to lift U.S. sanctions on Russian diesel in exchange for the Kremlin releasing diesel to supply the American and global marketplaces.

The White House's rhetoric towards Kyiv has also become increasingly adversarial, as Trump called for Zelensky to be replaced on Saturday over the latter's unwillingness to stop striking Russian oil refineries, which Trump claimed were primarily responsible for rising global and domestic fuel prices, a phenomenon which most experts attribute to the hostilities between the U.S. and Iran.

However, Trump has also taken heat for the deal. Four Republican senators joined three Democratic counterparts to openly criticize the decision.

"Congress explicitly banned Russian energy imports in 2022 to prevent American dollars from financing Putin's brutal war against Ukraine. Congress was clear: the U.S. should not import oil from Russia until it ends its aggression against Ukraine and ceases threats against our NATO Allies," said Susan Collins, Lisa Murkowski, John Curtis and Thom Tillis, who joined Democrats Jeanne Shaheen, Richard Blumenthal and Ron Wyden in signing the document.

The letter goes on to note that Trump's decision "to allow Russian diesel imports to the U.S. runs directly counter to that law" and has "has also failed to consult with Congress or submit any explanation to justify its decision as required by statute."

"The United States should not provide Putin with a financial lifeline while Russia continues to kill Ukrainian civilians. The Administration must immediately reverse course," the senators concluded.